Do I need to Renew My Entity’s International Registry Registration
You received notice that your entity’s registration is expiring on the International Registry (IR). The IR is also known as the Cape Town Registry, International Aircraft Registry, Aircraft Registry and IR. Do you need to renew?
How to Evaluate Whether to Renew an Entity’s IR Registration
First, evaluate whether you have entered into any agreements, such as loan agreements, with covenants that require your entity to remain active on the IR during the term of the financing. You want to avoid inadvertently violating the terms of your aircraft loan agreements. If you are unsure of the answer to this question then the best action is generally to renew the entity on the IR so your status remains active.
Second, determine if any upcoming events require your status to be active on the IR. These may include the purchase or sale of an aircraft, new financing or leasing an aircraft.
You can Renew/Revive an Entity’s IR Registration in the Future
Next, if you have determined that no financing documents require the entity to remain active on the IR and you have no pending events that require IR registration then you can simply not re-renew your entity’s IR registration. Fortunately, you may renew/revive your entity on the IR at any time. If you decide to renew at a later time, please note to start the process a few weeks ahead of time to ensure the entity registration is active prior to the closing date of your transaction. Delays in obtaining proper registrations with the IR could result in a delayed closing.
Melissa K. Gowin is a Senior Legal Assistant with the aviation law firm of Jetstream Aviation Law, P.A. and assists attorneys, clients and escrow agents in coordinating documentation for complex aircraft purchase, sale and financing transactions. Jetstream Aviation Law can be found at www.Jetstreamlaw.com.