The Convention on International Interests in Mobile Equipment (Cape Town Convention) provides rules for the establishment and effects of international interests relating to certain categories of mobile equipment specified in its protocols: aircraft equipment, railway rolling stock, space assets, and mining, agricultural and construction equipment (MAC).
Decision 2009/370/EC authorises the accession of the European Union (EU) to the Cape Town Convention and its aircraft equipment protocol.
Decision 2009/940/EC authorises the signing by the EU of the protocol to the convention which sets out specific rules for railway rolling stock.
Decision 2014/888/EU authorises the approval of the railway rolling stock protocol on behalf of the EU.
Decision (EU) 2022/1022 authorises the signing of the protocol to the convention which sets out specific rules for MAC equipment.

KEY POINTS

Cape Town Convention

The Cape Town Convention attempts to resolve the problem of obtaining certain and opposable rights to high-value mobile equipment, specifically:
- aircraft equipment,
- railway rolling stock,
- space assets.
Different legal systems have different approaches to securities, title retention agreements and lease agreements, which creates uncertainty for lending institutions, making them less willing to provide financing for such assets.
The treaty creates international standards for the registration of contracts of sale (including dedicated registration agencies), security interests (liens), leases and conditional sales contracts.
It also includes legal remedies for default in financing agreements, including repossession and the effect of particular states’ bankruptcy laws.

Protocol on aircraft equipment

Aircraft equipment refers to airframes, aircraft engines and helicopters.

The protocol sets out how the convention applies specifically to international sales of such equipment, including in terms of:

the formalities, effects and registration of contracts of sales;
remedies, such as in the case of insolvency, and rules for debtors;
the establishment of an international registry relating to international interests in aircraft parts;
jurisdiction and applicable law rules.

Protocol on railway rolling stock

Railway rolling stock refers to vehicles movable on a fixed railway track or directly on, above or below a guideway, together with items such as traction systems, engines, brakes, axles and other components, equipment and parts, installed on or incorporated in the vehicles.

The protocol sets out how the convention applies specifically to international sales of such rolling stock, including in terms of:

the identification of the railway rolling stock;
remedies, such as in the case of insolvency;
the establishment of an international registry relating to international interests on railway rolling stock;
jurisdiction and applicable law rules.

Protocol on mining, agricultural and construction equipment

The protocol sets out how the convention applies specifically to international sales of such equipment, including in terms of:

the identification of equipment;
association with immoveable property;
remedies, such as in the case of insolvency;
the establishment of an international registry relating to MAC equipment;
jurisdiction and applicable law rules.

DATE OF ENTRY INTO FORCE

The convention and the protocol on aircraft equipment entered into force on 1 March 2006.
The protocols on railway rolling stock and MAC have not yet entered into force.

MAIN DOCUMENTS

Convention on international interests in mobile equipment (OJ L 121, 15.5.2009, pp. 8–24).

Protocol to the Convention on international interests in mobile equipment on matters specific to aircraft equipment (OJ L 121, 15.5.2009, pp. 25–36).

Council Decision 2009/370/EC of 6 April 2009 on the accession of the European Community to the Convention on international interests in mobile equipment and its Protocol on matters specific to aircraft equipment, adopted jointly in Cape Town on 16 November 2001 (OJ L 121, 15.5.2009, pp. 3–7).

Council Decision 2009/940/EC of 30 November 2009 on the signing by the European Community of the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock, adopted in Luxembourg on 23 February 2007 (OJ L 331, 16.12.2009, pp. 1–3).

Council Decision 2014/888/EU of 4 December 2014 on the approval, on behalf of the European Union, of the Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Railway Rolling Stock, adopted in Luxembourg on 23 February 2007 (OJ L 353, 10.12.2014, pp. 9–12).

Council Decision (EU) 2022/1022 of 9 June 2022 on the signing, on behalf of the European Union, of the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Mining, Agricultural and Construction Equipment (MAC Protocol) (OJ L 172, 29.6.2022, pp. 1–3).

Proposal for a Council Decision on the signing, on behalf of the European Union, of the Protocol to the Convention on International Interests in Mobile Equipment on Matters specific to Agricultural, Construction and Mining Equipment (MAC Protocol) (COM(2021) 746 final, 3.12.2021).

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Convention on international interests in mobile equipment

SUMMARY OF:

WHAT IS THE AIM OF THE CONVENTION, PROTOCOL AND DECISIONS?

KEY POINTS

DATE OF ENTRY INTO FORCE

MAIN DOCUMENTS

RELATED DOCUMENTS