Paragraph 10

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 2 para. 9(a) words inserted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(a)
Sch. 2 para. 9(b) words added by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(b)
Sch. 2 para. 9(c) words inserted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(c)
Sch. 2 para. 10(a)(aa) substituted for Sch. 2 para. 10(a) by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(d)
Sch. 2 para. 10(b) word substituted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(e)
Sch. 2 para. 10(c) word substituted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(f)
Sch. 2 para. 10(d) word substituted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(g)
Sch. 2 para. 10(e) word substituted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(h)
Sch. 2 para. 11(1) words inserted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(i)
Sch. 2 para. 11(4) words substituted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(j)
Sch. 2 para. 12 words inserted by International Interests in Aircraft Equipment (Cape Town Convention) 2015 Sch. 5 para. 1(6)(k)

Moneys received by a mortgagee from the sale of the mortgaged aircraft shall be held by him in trust to be applied in accordance with the following order of priority:—

(a)

first, in payment of all expenses properly incurred by him in connection with the sale, or any prior attempted sale, of the aircraft;

(b)

secondly, in payment of the whole amount of principal and interest due under any prior aircraft mortgage to which the sale is not made conditional;

(c)

thirdly, in payment of the whole amount of principal and interest due under his aircraft mortgage and in payment in due proportion of the whole amount due under an aircraft mortgage, if any, ranking pari passu with his own mortgage;

(d)

fourthly, in payment of any amounts of principal and interest due under any duly registered mortgages over the aircraft, the ranking of which is postponed to that of his own mortgage; and

(e)

fifthly, in payment of any amount of principal and interest due under any mortgages over the aircraft ranked in accordance with the priorities provided for in Article 14 of this Order where the holder of any such mortgage has lodged in the hands of the mortgagee a claim in writing countersigned by the mortgagor,

and any residue of the moneys so received shall be paid to the owner or to any person authorised by the owner to give receipts therefor.