Singapore legislation
Section 4
Section 4
Remedies on insolvency
(1)
This section gives effect to Article XI of the Protocol to the extent that it applies to Singapore as described in the declarations.
(2)
This section applies in relation to an agreement where —
the debtor of the agreement —
if it is a body corporate or firm, is incorporated or registered in Singapore; or
if he or she is a natural person, is domiciled in or has his or her principal place of business in Singapore;
the international interest of the agreement has been registered; and
the debtor and creditor have not by written agreement excluded the application of this section.
(3)
Subject to subsection (4), where any insolvency proceedings have commenced against the debtor of an agreement and the aircraft object is in Singapore, the debtor or (if the insolvency administrator of the debtor has custody of the aircraft object) the insolvency administrator of the debtor must, no later than the date referred to in subsection (14), give an opportunity to the creditor to take possession of the aircraft object.
(4)
The insolvency administrator of the debtor or the debtor (as the case may be) may retain possession of the aircraft object where, on or before the date referred to in subsection (14) —
the insolvency administrator of the debtor or the debtor (as the case may be) has agreed to perform all future obligations of the debtor under the agreement; and
all defaults under the agreement (other than a default constituted by the commencement of the insolvency proceedings) have been cured.
(5)
Where the insolvency administrator of the debtor or the debtor fails to perform all future obligations of the debtor as agreed under subsection (4)(a), the creditor may immediately exercise the creditor’s right to take possession of the aircraft object.
(6)
Unless and until the creditor is given the opportunity by the insolvency administrator of the debtor or the debtor (as the case may be) to exercise the creditor’s right to take possession of the aircraft object under subsection (3) —
the insolvency administrator of the debtor or the debtor (as the case may be) must preserve the aircraft object and maintain it and its value in accordance with the agreement; and
the creditor is entitled (despite anything in any law) to apply for and obtain any interim relief available to it under this Act or any other law.
(7)
For the purposes of subsection (6)(a), the insolvency administrator of the debtor or the debtor may use the aircraft object under arrangements designed to preserve it and its value.
(8)
The insolvency administrator of the debtor is to be indemnified by the creditor for all reasonable costs incurred in complying with subsection (6)(a).
(9)
The right of the creditor to exercise any remedies under the Convention or Protocol after the date referred to in subsection (14) is not limited or otherwise affected by any other law.
(10)
No obligation of the debtor under the agreement may be modified under the relevant insolvency law except with the creditor’s consent.
(11)
Subsection (10) does not affect the right of the insolvency administrator of the debtor to terminate the agreement under the relevant insolvency law.
(12)
In this section, “insolvency law” means a provision of Part 7 of the Companies Act 1967, or Part 5, 7, 8, 9, 10, 11, 14 or 16 of the Insolvency, Restructuring and Dissolution Act 2018.
(13)
Subsections (3) to (8) do not apply to the insolvency administrator of the debtor if the insolvency administrator is appointed on or after the date referred to in subsection (14).
(14)
The date referred to in subsections (3), (4), (9) and (13) is the earlier of —
30 days after the commencement of insolvency proceedings; and
the date on which the creditor would have been entitled to take possession of the aircraft object but for this section.
(15)
No rights or interests, except for non-consensual rights or interests of a category covered by a declaration pursuant to Article 39(1) of the Convention, have priority in insolvency proceedings over registered interests.
(16)
The Convention as modified by Article IX of the Protocol applies to the exercise of any remedies under this section.