In Canada, financiers and lessors (creditors) have a variety of remedies available to them in the event aircraft operators or lessees (debtors) default on their financing or lease obligations. Central to these remedies is the ability of the creditors to take possession, deregister and export the aircraft. Since Canada is a "contracting state" under the Cape Town Convention on Mobile Assets and its related Aircraft Protocol (the CTC) and has lodged the necessary declarations, one such remedy available to creditors in Canada is an irrevocable deregistration and export authorization (IDERA).
An IDERA is a standing direction voluntarily issued by the debtor in favour of the designated creditor lodged with Transport Canada Aviation (TCA). An IDERA requires TCA to honour a request for deregistration and export made by its holder if the debtor defaults on its obligations to the creditor. The purpose of an IDERA is to remove an aircraft from the debtor's possession as soon as possible, transfer control to the creditor and enable it to export the aircraft as necessary. Compared to other default remedies available to creditors, such as the courts, the main benefit of an IDERA is its ability to ensure that creditors will have the "expeditious" cooperation of TCA and other administrative authorities in Canada in connection with the deregistration and export of the aircraft.
An IDERA must specify a named authorized party or the person that the authorized party certifies as its designee as being the sole person entitled to procure the deregistration of an aircraft from TCA and its export and physical transfer from Canada. An IDERA cannot name more than one authorized party, and there cannot be more than one IDERA lodged at TCA with respect to the same aircraft. This simplifies the enforcement procedure for TCA so they need only to look to one authorized party and eliminates the possibility of competing IDERAs.
In order to be effective, the registered owner of the aircraft must file with TCA the executed IDERA in substantially the same form as prescribed by the CTC, and most importantly, the registered owner and holder of the IDERA must receive a stamped and acknowledged copy of the IDERA from TCA.
In order to revoke a lodged IDERA, the authorized party must consent in writing to the revocation and submit such consent to TCA.
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