Iceland ratifies the Cape Town Convention

Iceland ratifies the Cape Town Convention

On Friday August 21st, LOGOS sent a newsletter to selected clients regarding ratification of the Cape Town Convention in Iceland. The newsletter can be read here.

Iceland ratifies the Cape Town Convention

Effective date: 1 October 2020

On 25 June 2019, the Icelandic Parliament enacted a law enabling the government to ratify the Convention on International Interests in Mobile Equipment (“Convention”) and the Protocol on Matters Specific to Aircraft Equipment (“Aircraft Protocol”).

We are pleased to advise that the Icelandic Government has finalized the ratification process and has now announced that the Convention and Aircraft Protocol will take effect on 1 October 2020. At the same time the main provisions of the implementing Act will enter into force.

It follows that the Convention and the Aircraft Protocol will have the force of law in Iceland subject to certain adaptations listed in the Act which reflect the various declarations made by Iceland.

Generally, the implementation act ensures that the Convention will prevail if ever in conflict with national law. In order to avoid conflict with existing legislation, the Act on the implementation of the Convention amends certain other acts with the stipulation that the Act on the Cape Town Convention shall take precedence over such pre-existing acts.

Iceland has declared that any kind of non-consensual right or interest pursuant to Article 39 of the Convention such as salvage money and expenses in relation to storage, apart from those set out in Article 40 of the Convention, shall have priority over international interests, whether in insolvency proceedings or not, without registration in the International Registry, as long as they have been established in accordance with Icelandic law.

Pursuant to Article 55 of the Convention, Iceland has declared that the provisions of the Lugano Convention on jurisdiction and the enforcement of judgments in civil and commercial matters will be applied to Articles 13 and 43 of the Convention regarding speedy relief pending final determination, with a time period of 10 and 30 days depending on the remedies in question.

Iceland makes the Alternative A-declaration with a waiting period of 60 days, the IDERA-declaration and the leave-of-court declaration. Iceland further makes a declaration on the choice of law and insolvency assistance.

The Act further contains provisions on registrable and non-registrable non-consensual interests and the requirements for them taking precedence over registered international interests.

For further information on the entry into force of the Convention and Protocol and the declarations lodged by the Government of Iceland please contact: Erlendur Gislason, Partner.

 Erlendur Gíslason

Erlendur Gislason