TNAG-0777-FCO40-981-Involvement-of-Hong-Kong-in-air-services-agreements-1978 — Page 34

SCHEDULE 2

PART I

Article 19

APPLICATION OF THE ORDER TO SCOTLAND

1. (a) In this Schedule-

"act of bankruptcy" has the meaning assigned to it in subparagraph (b)(ii) of this paragraph;

"aircraft mortgage" has the meaning assigned to it in paragraph 2 of this Schedule; "mortgagee" means the creditor in an aircraft mortgage;

"mortgagor" means the person in security of whose indebtedness or obligation the aircraft mortgage is granted;

and references to an aircraft which is the subject of an aircraft mortgage include, where the mortgage so extends, a reference to a store of spare parts designated or appro- priated to that aircraft.

(b) In the application of this Order to Scotland--

(i) in Article 14 there shall be added the following paragraph--

"6. Subject to paragraph 5 of this article, an aircraft mortgage may contain provisions regulating the order in which that mortgage shall rank with any other mortgage of that aircraft or any floating charge within the meaning of the Companies (Floating Charges) (Scotland) Act 1961(a) or any re-enactment thereof."

(ii) in Article 15 the words "act of bankruptcy" shall mean--

(a) in the case of a company, a winding-up order, or a resolution for vol- untary winding-up (other than a members' voluntary winding-up) or the taking of possession, by or on behalf of the holders of any debentures secured by a floating charge, of any property of the company comprised in or subject to the charge;

(b) in the case of any other person, his notour bankruptcy, the execution of a trust deed for behoof of, or the making of a composition contract or arrangement with his creditors or in the event of his death, the appoint- ment of a judicial factor under section 163 of the Bankruptcy (Scotland) Act 1913(b) to divide his insolvent estate among his creditors, or the making of an order for the administration of his estate according to the law of bankruptcy under section 130 of the Bankruptcy Act 1914(c) or the administration of his estate in accordance with the rules set out in Part I of Schedule 1 to the Administration of Estates Act 1925(d).

2. A security created in Scotland under Article 3 of this Order for a loan or other obligation shall be constituted by a mortgage in, or as nearly as may be in, the form specified in Part II of this Schedule which shall be known as an aircraft mortgage.

3. A mortgage registered under this Order shall have effect without any requirement of law that delivery of the aircraft shall be made to the mortgagee.

4. A mortgage so registered may be transferred, in whole or in part, by the mortgagee by a transfer in, or as nearly as may be in, the form specified in Part III of this Schedule.

5. An aircraft mortgage may be discharged, in whole or in part, by the mortgagee by a discharge in, or as nearly as may be in, the form specified in Part IV of this Schedule or by a receipt for the mortgage money duly endorsed on the aircraft mortgage.

6. The provisions of paragraphs 7 to 11 of this Schedule, with such variations as may

(a) 1961 c. 46. (c) 1914 c. 59.

(b) 1913 c. 20.

(d) 1925 c. 23.

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