Section 10: Security Interests in Aircraft1. A security interest in an aircraft may be created by a written agreement between the parties, which must be registered with the Canadian Aviation Authority.2. The security interest may be in the form of a mortgage, pledge, or other instrument that grants the creditor the right to take possession of the aircraft in the event of default.3. The security interest may also include any proceeds from the sale or lease of the aircraft.4. The creditor may enforce their security interest by taking possession of the aircraft, selling it, or leasing it to a third party.5. The debtor must maintain the aircraft in good condition and comply with all applicable laws and regulations.6. The debtor may not sell or otherwise dispose of the aircraft without the creditor’s consent.7. The creditor may require the debtor to maintain insurance on the aircraft and provide evidence of such insurance.8. Any disputes between the parties must be resolved through arbitration or other agreed-upon means of dispute resolution.9. The provisions of this section are in addition to any other rights or remedies available to the creditor under Canadian law.

Section 10 of the Canadian Aviation Regulations outlines the rules and regulations regarding security interests in aircraft. This section provides a framework for creditors to secure their interests in an aircraft, which may include taking possession of the aircraft in the event of default, selling it, or leasing it to a third party.

To create a security interest in an aircraft, the parties must have a written agreement that is registered with the Canadian Aviation Authority. The security interest may take the form of a mortgage, pledge, or other instrument that grants the creditor the right to take possession of the aircraft in the event of default. The security interest may also include any proceeds from the sale or lease of the aircraft.

The debtor must maintain the aircraft in good condition and comply with all applicable laws and regulations. The debtor may not sell or otherwise dispose of the aircraft without the creditor’s consent. The creditor may require the debtor to maintain insurance on the aircraft and provide evidence of such insurance.

Any disputes between the parties must be resolved through arbitration or other agreed-upon means of dispute resolution. The provisions of this section are in addition to any other rights or remedies available to the creditor under Canadian law.

There have been several cases that have dealt with security interests in aircraft. In Air Canada v. M & L Travel Ltd., the court held that Air Canada had a valid security interest in an aircraft that was leased to M & L Travel Ltd. In another case, Royal Bank of Canada v. Air Canada, the court held that Royal Bank of Canada had a valid security interest in an aircraft that was leased to Air Canada.

Other cases have dealt with issues such as priority of security interests, the rights of secured creditors in bankruptcy proceedings, and the validity of security agreements. These cases highlight the importance of carefully drafting and registering security agreements to ensure that creditors have a valid security interest in an aircraft.

In conclusion, Section 10 of the Canadian Aviation Regulations provides a framework for securing interests in aircraft. Creditors must have a written agreement that is registered with the Canadian Aviation Authority, and the debtor must maintain the aircraft in good condition and comply with all applicable laws and regulations. Any disputes must be resolved through arbitration or other agreed-upon means of dispute resolution. It is important to carefully draft and register security agreements to ensure that creditors have a valid security interest in an aircraft.