27ARegistration of security interests in relation to aircraft and components of aircraft

27A Registration of security interests in relation to aircraft and components of aircraft

(1) This section applies to an aircraft: (a) that engages in trade or commerce: (i) between Australia and places outside Australia; or (ii) among the States; or (iii) within a Territory; or (iv) between a State and a Territory; or (v) between 2 Territories; or (b) that is owned by a body corporate that: (i) is a foreign corporation; or (ii) is incorporated in a Territory; or (iii) is a trading corporation formed within the limits of the Commonwealth (other than a trading corporation incorporated in a Territory); or (iv) is a financial corporation formed within the limits of the Commonwealth (other than a financial corporation incorporated in a Territory). (2) Without prejudice to the operation that subsection (1) has apart from this subsection, that subsection also has the effect that it would have if: (a) the reference to an aircraft that is owned by a body corporate that is a trading corporation formed within the limits of the Commonwealth were a reference only to such an aircraft that is used by the body corporate for the purposes of its trading activities; and (b) the reference to an aircraft that is owned by a body corporate that is a financial corporation formed within the limits of the Commonwealth were a reference only to such an aircraft that is used by the body corporate for the purposes of its financial activities. (3) In this section:

hire‑purchase agreement, in relation to an aircraft or a component of an aircraft, means an agreement for the bailment of the aircraft or component under which:

(a) the bailee may buy the aircraft or component; or
(b) the property in the aircraft or component will or may pass to the bailee.

instalment purchase agreement, in relation to an aircraft or a component of an aircraft, means an agreement for the purchase of the aircraft or component by instalments (whether the instalments are described as instalments of the purchase price, as rent, as hiring charges or otherwise) other than such an agreement:

(a) under which the property in the aircraft or component passes to the purchaser when the agreement is made; or
(b) in respect of which the purchaser is a person who is engaged in the business of selling aircraft or components of aircraft.

security interest, in relation to an aircraft or a component of an aircraft:

(a) means:
(i) a mortgage, charge or other encumbrance over the aircraft or component; or
(ii) any other interest in, or any power over or in relation to, the aircraft or component (however the interest or power is created) for the purpose of securing repayment of a debt (including payment of interest on a debt) or the performance of any other obligation; and
(iii) any other interest in the aircraft or component that is of a kind declared by the regulations to be a security interest; and
(b) includes:
(i) if the aircraft or component is the subject of a hire‑purchase agreement—the interest of the bailee under the agreement; and
(ii) if the aircraft or component is the subject of an instalment purchase agreement—the interest of the purchaser under the agreement.