[Federal Register Volume 65, Number 189 (Thursday, September 28, 2000)]
[Notices]
[Page 58303]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-24930]


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DEPARTMENT OF STATE

[Public Notice No. 3411]


Proposed Convention Sponsored by Unidroit on International 
Equipment Finance and Draft Protocol on Space Equipment Meeting Notice

AGENCY: Department of State.

ACTION: The International Finance Study Group of the State Department's 
Advisory Committee on Private International Law will meet in 
Washington, DC on Friday, October 13 from 10 a.m. to 3 p.m. The subject 
will be international negotiations on a multilateral treaty system to 
promote secured financing for high-value mobile equipment, with a 
particular focus at this meeting on the space equipment industry and 
implications for the provision of space-based services.

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Agenda

    The meeting will cover the purpose and concepts of the proposed 
Convention on international interests in mobile equipment; the 
application of asset-based financing to space equipment; the recent 
meeting of the ICAO Legal Committee at Montreal on the proposed 
Convention in relation to aircraft and the draft Aircraft Equipment 
Protocol; the upcoming UNIDROIT meeting on a draft Space Equipment 
Protocol; and the relationship between these developments and the 
United Nations Committee on the Peaceful Uses of Outer Space (UNCOPOUS) 
and the outer space treaty system.
    Comments will be requested on draft provisions of the proposed 
Space Equipment Protocol. The intersection with the Uniform Commercial 
Code in the United States will be considered, along with personal 
property laws of Canada and other countries, as time permits, as well 
as related draft conventions and model national laws on secured 
financing, including work underway at UNCITRAL (the United Nations 
Commission on International Trade Law) on receivables financing and the 
OAS (Organization of American States) on a model Inter-American 
national law on secured financing.
    The intersection between the foregoing and the outer space treaty 
system will be reviewed, with particular attention to provisions on 
national control and liability. In addition, differences between the 
international ``notice filing'' registry for financial interests 
contemplated by the new treaty system, and the existing registration of 
space objects at UNCOPOUS will be examined.

Background

    The United States has been an active participant in negotiations on 
a proposed multilateral convention (UNIDROIT Convention) to provide for 
the creation and enforceability of international secured finance 
interests in mobile equipment, specifically including at this stage 
aircraft, space and satellite equipment, and railroad rolling stock. A 
Space Working Group authorized by UNIDROIT has prepared the current 
draft protocol on provisions specific to space equipment financing.
    Provision may be made at a future date for protocols on other 
categories of equipment, such as containers, construction and 
agricultural equipment, certain types of vessels, etc. Other 
international organizations participate as appropriate, such as ICAO 
and IATA with respect to aircraft and airline issues, as embodied in 
the draft Aircraft Equipment Protocol or otherwise reflected in the 
basic convention. Completion of the basic Convention and Aircraft 
Protocol is expected by mid-2001. Completion of protocols on space and 
rail equipment is expected to follow.
    The proposed Convention and equipment specific protocols together 
will provide comprehensive international rules on financing interests 
in such equipment and thus stimulate the development of these 
industries as well as the capacity of many countries to finance such 
equipment, and related services, through private sector capital 
markets. This can enhance infrastructure growth, as well as reduce 
reliance on direct government funding or use of sovereign debt, which 
in turn facilitates privatization and market development.
    Key features of the draft Convention include the creation of 
internationally enforceable interests pursuant to the Convention; 
establishment of an international computer-based registry system for 
notice of finance interests; provisions on assignments of such 
interests; priorities based on filing; default remedies; and optional 
provisions on key finance issues such as certain remedies, timeliness 
of remedies, insolvency, etc. The proposed registration system would 
not effect national registration and recordation systems under the 
Chicago Convention for aircraft nor the object registry functions of 
UNCOPOUS under the space treaty system.

Attendance

    The meeting will be held at Conference Room H-1500, State 
Department Annex 1 (Columbia Plaza), 2401 E Street NW, at the 
intersection of 23d Street and Virginia Ave., Washington, D.C. The 
meeting is open to the public, subject to rulings of the Chair. Persons 
wishing to attend should contact Kenneth Hodgkins, Space and Advanced 
Technology, Bureau of Oceans, Environmental and Scientific Affairs 
(OES/SAT), 202-663-2398, fax 663-2404, email [email protected], or 
Harold Burman, Office of Legal Adviser (L/PIL), at 202-776-8421, fax 
776-8482, email [email protected].

Documents

    Drafts of the basic Convention on mobile equipment and Aircraft 
Protocol are available at www.UNIDROIT.org, scroll to ``news''; revised 
versions will be available shortly which reflect recent changes. The 
draft Space Equipment Protocol will be available via email or regular 
mail upon request.

    September 25, 2000.
Harold S. Burman,
Executive Director, Secretary of State's Advisory Committee on Private 
International Law, Department of State.
[FR Doc. 00-24930 Filed 9-27-00; 8:45 am]
BILLING CODE 4710-08-P