There is no provision in the Civil Aviation Act 1988 or the CASR’s for the registration of a security interest in Australia registered aircraft. Section 27A of the Air Navigation Act 1920 establishes the rules for the “Registration of security interest in relation to aircraft and aircraft components”.

In 1997, the Aviation Legislation Bill (No.1) was passed. Despite the amendment to the Air Navigation Act 1920 in 1997 establishing the rules for the registration of an aircraft security interest, no such function has been transferred to any Commonwealth or State Government Agency, nor is there a regulatory structure in place to administer the function.

Is it mandatory I register an interest?

No. The registration of an interest is voluntary, a financier may mandate their interest is registered or request a certificate is provided when an aircraft or component is subject to finance.

How long does a search of the National Register of Encumbered Aircraft?

2 working days is the standard turnaround time for a search of the register. This is dependant on the complexity of the search. You will be provided a certificate by fax or email and the original will be posted to the address provided.

Do I need to be a Bank or Finance Company to register an interest?

No. Any entity may register an interest in an aircraft or aircraft component. This may include, but not limited to – Vendor Finance, Engine & Propeller Overhaul and Installation of Avionics. You must be in a position to provide documentation, if requested by the National Register of Encumbered Aircraft, proving you have a financial interest in the aircraft or component.

Is this limited to domestic registered (VH) aircraft?

No. The National Register of Encumbered Aircraft has taken a holistic approach to the aviation community. Anything from an A380 to a Microlight can be registered or searched.

What is an Airservices Australia Section 61 Certificate?

This has created significant confusion within the aviation industry.

Within the Air Services Act 1995, Airservices Australia has the ability to impose a ‘statutory lien’ over an aircraft for unpaid [Airservices Australia] service charges. A statutory lien gives Airservices Australia the ability to seize and sell an aircraft if air navigation charges remain unpaid. Section 61 of the Act outlines the limitations and scope of a statutory lien hence the term ‘Section 61 Certificate’.

A member of the public does not have the ability to impose a statutory lien. Airservices Australia does not maintain a searchable ‘financial interest register’ available to the public.

In 1998, Airservices Australia introduced a set of ‘Standard Contract Terms’ under common law. This does not have the provision to impose a statutory lien over an aircraft. Airservices Australia does however charge a small number of aircraft under the Air Services Act therefore a statutory lien may be applicable.

As at 8 November 2008, no aircraft were subject to an Airservices Australia imposed statutory lien.

Isn’t a CASA Certificate of Registration the same thing?

As outlined on the Civil Aviation Safety Authority (CASA) website:

‘An entry in the Australian Civil Aircraft Register or a certificate of registration for an aircraft must not be viewed as conclusive evidence of the legal or beneficial property interest in the aircraft, this is clearly stated on the Certificate of Registration. Financial interest in an aircraft can only be confirmed through whatever legal and commercial mechanisms available outside of CASA’