Panama: Convention International Rights over Aircrafts

The Convention for the International Recognition of Rights over Aircraft's, approved in Geneva in 1948, was formally ratified trough Law No. 23 of April 27, 1998 issued by the Republic of Panama.

This International Convention covers several principal matters:

1. Rights of ownership of aircrafts;
2. Rights afforded to the lessee of an aircraft to acquire its ownership by purchase;
3. Right to the possession of an aircraft based on a lease contract for at least six (6) months;
4. The mortgage and similar liens over aircrafts, securing the payment of an indebtedness;
5. The recognition as privileged liens of the amount owed for the salvage of an aircraft and the extraordinary expenses vital for the conservation of the aircraft; and
6. The seizure and judicial sale of an aircraft as well as the procedure therefor.

Particularly, the Convention states that the procedure for the judicial sale of an aircraft shall be determined by the laws of the State where the sale is taking place, but it sets forth important rules for claimants and creditors.

Dr. Juan Francisco Pardini
pardini@padela.com