Bill 8, the International Interests in Mobile Equipment (Aircraft Equipment) Act, was introduced in the legislature today by Finance Minister Kevin Falcon.

The proposed legislation would implement the Convention on International Interests in Mobile Equipment and the associated Aircraft Protocol in British Columbia, once Canada ratifies them.

The convention and protocol have established an international registry for aircraft equipment used to guarantee loans, which can involve millions of dollars. Aircraft equipment includes aircraft with eight or more seats and helicopters with five or more seats.

Companies in member states follow an internationally recognized set of rules for registering an aircraft used as collateral, and for seizing and selling the aircraft if the borrower defaults. As a result, the risk associated with these loans is significantly reduced.

By participating in the registry, businesses can improve their access to lower-cost credit, as the registry helps reduce the risk of international financing that uses aircraft equipment as collateral. Registering the aircraft asset determines the priority of competing lenders' security interests based on the time of registration.

Currently, when the B.C. aviation companies use aircraft as collateral for a loan, they tend to pay higher interest rates than businesses in the 43 countries that have already implemented the convention and protocol, including the European Union and the US.

Contact:

Jamie Edwardson

Communication Manager

Ministry of Finance

250 356-9872

Connect with the Province of B.C. at: www.gov.bc.ca/connect