Security interests and their ranking under Maltese shipping and aviation law

Abstract

This thesis identifies and discusses those security interests which may be taken out against two forms of collateral assets, ships and aircraft, under the Maltese legal framework. These are privileges, hypothecs, possessory liens, and mortgages. However, as a result of the Cape Town Convention and the Aircraft Protocol, the forms of interests recognised over aircraft objects go beyond these, to cover also international interests as defined therein. Chapter 1 reviews the development of the two industries in Malta and of the laws which regulate them locally, the introduction of the Cape Town Convention and its Protocols, its aims and benefits, and the future possibility of a ship Protocol. It additionally provides important definitions of the terms ships and aircraft for the purposes of security, and of aircraft objects under the Cape Town Convention. Chapter 2 examines the meaning of various notions including credit, insolvency, and security interests, and provides a theoretical study into the nature of specific security interests relevant to the discussion at hand. Chapter 3 consists of a study of selected provisions of the Merchant Shipping Act relevant to security interests and their ranking. Chapter 4 reviews the provisions of the Aircraft Registration Act which are relevant to the discussion of national security interests and their ranking at law. Chapter 5 deals with the interests created or recognised by the Cape Town Convention and its Aircraft Protocol, and the priority rules thereof. Chapters 3 to 5 are concluded with a case study with the aim of putting into practice the examined ranking provisions. The Conclusion highlights relevant discrepancies between the shipping and aircraft legal framework which arise in the previous chapters, and any suggested amendments. Selected proposed amendments in the Consultation Document published in relation to the Aircraft Registration Act in 2014 are briefly examined.