Implications of CTC for Use of Trusts in Aircraft Finance and Leasing Transactions

Article VI of the Aircraft Protocol endorses the use of trusts in transactions subject to the Cape Town Convention. It requires, as autonomous treaty law, each contracting state to recognise trusts validly created under the substantive law under which the trust was constituted, whether or not trusts are known to or accepted by the national law of that contracting state and regardless of its pre-Cape Town Convention confl ict of laws rules. The foregoing applies equally to national law structures analogous to trusts. Background to, analysis supporting, and the legal implications of, these conclusions are set out in this article.