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How do you protect your asset if a borrower is overseas?

How do you protect your asset if a borrower is overseas?

We are very careful of the jurisdictions in which we allow transaction to be placed on the system. Property and capital equipment will be generally be UK based only.

In the case of movable assets, such as aircraft, boats etc., these assets are protected by international treaty known as ‘The Cape Town Convention’. The Cape Town Convention on International Interests in Mobile Equipment, or Cape Town Treaty is an international treaty intended to standardise transactions involving movable property. The treaty creates international standards for registration of contracts of sale (including dedicated registration agencies), security interests (liens), leases and conditional sales contracts, and various legal remedies for default in financing agreements, including repossession and the effect of a particular states’ bankruptcy laws.

The convention gives rights to the lessor of aircraft and other equipment to efficiently take possession of equipment in default.

Also with aircraft the title is registered via a mortgage in the countries in which the aircraft flies, there is also in place a prior agreed certificate that allows the asset to be de-registered with the local air authority and re-registered for onward sale or lease.

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