Proposed New Aircraft Mortgage Legislation

Overview

The Isle of Man Civil Aviation Administration, of which the Isle of Man Aircraft Registry is a part, maintains a Register of Aircraft Mortgages in accordance with the Mortgaging of Aircraft Order 1972 (as amended and applied to the Isle of Man) (opens in a new tab). Mortgagees of aircraft registered under the Mortgaging of Aircraft Order are afforded rights by the Civil Aviation (Aircraft Registration and Marking) Order 2022 (opens in a new tab) that the aircraft must not be deregistered by the Aircraft Registry without their prior consent. The Aircraft Registry upholds and takes these obligations very seriously.

The IOM CAA held a consultation from 25 June 2024 to 25 August 2024 to inform our drafting of updated legislation and associated processes. The consultation responses and proposed next steps were published 29 May 2025 (opens in a new tab).

We are now consulting on the new proposed Aircraft Mortgage Legislation.

Headline points to note from our proposals:

• No changes are made to the requirement that the Department must not deregister an aircraft subject to a registered mortgage unless the mortgagee has given prior consent
   
• Mortgages and priority notices registered under the Mortgaging of Aircraft Order 1972 will be regulated and be afforded the rights provided under the new Order without the need for new applications or submissions
   
• Application forms and details of the supporting information required will not be specified in the legislation but instead will be as specified by the Department through publications, forms, website etc
   
• Priority notices will expire after 30 working days unless the registration of the priority notice is extended up to a maximum of 60 working days
   
• Any changes in the information supplied to the Department by or on behalf of the mortgagee must be notified as soon as possible but no later than 2 working days
   
• The principles of mortgage priority are unchanged
   
• Mortgages will not have continued rights after the deregistration of the aircraft. Once the aircraft is deregistered the mortgage is also deregistered
   
• Deregistration of mortgage:
  • The ability for the mortgagee to deregister an undischarged mortgage is introduced
     
  • On discharge of mortgage the mortgage is also deregistered
     
  • On cancellation of aircraft registration with mortgagee consent, the mortgage is also deregistered
• The provisions for transfer to International Registration are not transposed as the mortgage deregistration process above may be used in such circumstances
   
• Mortgage inspections by the public are constrained to ascertaining whether a mortgage for a particular aircraft is registered or not. Provisions are introduced to prevent detailed mortgage information from disclosure under Freedom of Information legislation
   
• New provisions are specified that enable the Department to propose amendments to the Register. Rights of representation are introduced in response to such proposals as well as the ability to appeal a decision of the Department

Who may be interested in this consultation

We encourage responses from any persons or organisations associated with and affected by the registration of aircraft mortgages, including:

• Aircraft owners and operators
   
• Financial institutions, such as banks, credit unions, investment companies, etc
   
• Insurance companies
   
• Corporate service providers

Related documents and information

• Proposed Civil Aviation (Mortgaging of Aircraft) Order 2025 (opens in a new tab)
   
• Traceability Matrix - Civil Aviation (Mortgaging of Aircraft) Order 2025 ('the 2025 Order') (opens in a new tab)
   
• Transposition table showing how the articles of the current Mortgaging of Aircraft Order 1972 have been addressed (opens in a new tab)

Reasonable adjustments and alternative formats

The Department is committed to equal opportunities and our aim is to make our documents easy to use and accessible to all.

We will take steps to accommodate any reasonable adjustments and provide such assistance as you may reasonably require to enable you to access or reply to this consultation.

If you would like to receive this document as a paper copy, in another format or need assistance with accessing or replying to this consultation, please email caa@gov.im or telephone +44 1624 682358.

Responding to this consultation and questions

You can respond to this consultation online by clicking on the 'Online Survey' link below. If you have any questions please email caa@gov.im