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U.S. Code as of:
01/19/04
Section 1110. Aircraft equipment and vessels
(a)(1) Except as provided in paragraph (2) and subject to
subsection (b), the right of a secured party with a security
interest in equipment described in paragraph (3), or of a lessor or
conditional vendor of such equipment, to take possession of such
equipment in compliance with a security agreement, lease, or
conditional sale contract, and to enforce any of its other rights
or remedies, under such security agreement, lease, or conditional
sale contract, to sell, lease, or otherwise retain or dispose of
such equipment, is not limited or otherwise affected by any other
provision of this title or by any power of the court.
(2) The right to take possession and to enforce the other rights
and remedies described in paragraph (1) shall be subject to section
362 if -
(A) before the date that is 60 days after the date of the order
for relief under this chapter, the trustee, subject to the
approval of the court, agrees to perform all obligations of the
debtor under such security agreement, lease, or conditional sale
contract; and
(B) any default, other than a default of a kind specified in
section 365(b)(2), under such security agreement, lease, or
conditional sale contract -
(i) that occurs before the date of the order is cured before
the expiration of such 60-day period;
(ii) that occurs after the date of the order and before the
expiration of such 60-day period is cured before the later of -
(I) the date that is 30 days after the date of the default;
or
(II) the expiration of such 60-day period; and
(iii) that occurs on or after the expiration of such 60-day
period is cured in compliance with the terms of such security
agreement, lease, or conditional sale contract, if a cure is
permitted under that agreement, lease, or contract.
(3) The equipment described in this paragraph -
(A) is -
(i) an aircraft, aircraft engine, propeller, appliance, or
spare part (as defined in section 40102 of title 49) that is
subject to a security interest granted by, leased to, or
conditionally sold to a debtor that, at the time such
transaction is entered into, holds an air carrier operating
certificate issued pursuant to chapter 447 of title 49 for
aircraft capable of carrying 10 or more individuals or 6,000
pounds or more of cargo; or
(ii) a documented vessel (as defined in section 30101(1) of
title 46) that is subject to a security interest granted by,
leased to, or conditionally sold to a debtor that is a water
carrier that, at the time such transaction is entered into,
holds a certificate of public convenience and necessity or
permit issued by the Department of Transportation; and
(B) includes all records and documents relating to such
equipment that are required, under the terms of the security
agreement, lease, or conditional sale contract, to be surrendered
or returned by the debtor in connection with the surrender or
return of such equipment.
(4) Paragraph (1) applies to a secured party, lessor, or
conditional vendor acting in its own behalf or acting as trustee or
otherwise in behalf of another party.
(b) The trustee and the secured party, lessor, or conditional
vendor whose right to take possession is protected under subsection
(a) may agree, subject to the approval of the court, to extend the
60-day period specified in subsection (a)(1).
(c)(1) In any case under this chapter, the trustee shall
immediately surrender and return to a secured party, lessor, or
conditional vendor, described in subsection (a)(1), equipment
described in subsection (a)(3), if at any time after the date of
the order for relief under this chapter such secured party, lessor,
or conditional vendor is entitled pursuant to subsection (a)(1) to
take possession of such equipment and makes a written demand for
such possession to the trustee.
(2) At such time as the trustee is required under paragraph (1)
to surrender and return equipment described in subsection (a)(3),
any lease of such equipment, and any security agreement or
conditional sale contract relating to such equipment, if such
security agreement or conditional sale contract is an executory
contract, shall be deemed rejected.
(d) With respect to equipment first placed in service on or
before October 22, 1994, for purposes of this section -
(1) the term "lease" includes any written agreement with
respect to which the lessor and the debtor, as lessee, have
expressed in the agreement or in a substantially contemporaneous
writing that the agreement is to be treated as a lease for
Federal income tax purposes; and
(2) the term "security interest" means a purchase-money
equipment security interest.
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