ABSTRACT
Aircraft are personal chattels and as such may be made the subject of security for obligations. Mortgages may be created either as legal or equitable mortgages. A charge may be created over personal property such as an aircraft as security for the discharge of an obligation which then gives rise to an encumbrance on the aircraft. The Mortgaging of Aircraft Order 1972 (MAO) made under Section 16 of the Civil Aviation Act 1968 came into force on 1st October 1972. It created a register of mortgages of aircraft registered in the United Kingdom nationality register maintained by the Civil Aviation Authority. Article 3 of the MAO provides that a registered mortgage may include any store of spare parts for the aircraft the subject of the registered mortgage. Equity gives effect to this if the goods are sufficiently identifiable when acquired by the mortgagor and terms of mortgages providing for the mortgaging of future parts are allowed by the Register.
