A new bill aimed at lowering interest rates for aviation companies using their aircraft as collateral for loans has been introduced into the B.C. legislature.
Finance Minister Kevin Falcon introduced Bill 8, the International Interests in Mobile Equipment (Aircraft Equipment) Act, in the legislature yesterday.
The bill would implement the Convention on International Interests in Mobile Equipment and the associated Aircraft Protocol in B.C., once Canada ratifies them.
The convention and the protocol, already implemented in 43 countries, have established an international registry for aircraft equipment used to guarantee loans. Included are aircraft with eight or more seats and helicopters with five or more seats.
Aviation companies in member states tend to pay lower interest rates for loans than those in B.C., as they follow an internationally recognized set of rules for registering an aircraft used as collateral, lowering the risk associated with these loans.
The convention and protocol also establish rules for seizing and selling the aircraft if the borrower defaults.
Calls to the Aerospace Industry Association of B.C. for comment were not returned by press deadline.
Jenny Wagler