The Cape Town Convention : its application to space assets and relation to the law of outer space

Acknowledgements . . xi
List of Abbreviations . . xiii

1 Introduction . . 1
1.1. An Overview of the Financing of Space Ventures . . 3
1.2. The Challenges of Financing Space Assets . . 7
1.3. An Example of an Efficient Law of Secured Finance: Article 9 of the U.C.C. . . 15
1.4. The Cape Town Convention: A New Era of Asset-Backed Finance . . 20
1.5. The Genesis and Drafting of the Convention and Space Assets Protocol . . 23
1.6. Industry Reception of the Space Assets Protocol . . 27

2 The Operation of the Convention and the Space Assets Protocol . . 29
2.1. The Nature of an International Interest . . 30
2.1.1. Security Interests . . 31
2.1.2. Conditional Sales . . 32
2.1.3. Leases . . 32
2.1.4. Resolving Questions about the Nature of a Transaction . . 33
2.1.5. The Requirement of a "Uniquely Identifiable Space Asset" . . 34
2.2. The Definition of "Space Asset" . . 34
2.3. The Sphere of Application of the Convention . . 38
2.3.1. General Rules Regarding the Sphere of Application of the Convention . . 38
2.3.2. The Application of the Convention to Vehicles Only Temporarily in Space . . 39
2.3.3. The Application of the Convention to Pre-existing Interests . . 41
2.3.4. Internal Transactions . . 42
2.3.5. Entry into Force . . 43
2.4. Creating an International Interest . . 44
2.4.1. The Requirement of a Written Agreement . . 44
2.4.2. The Requirement of the "Power to Dispose" . . 45
2.4.3. The Requirement of the Sufficient Identification of the Asset . . 46
2.4.4. The Requirement of a Statement of Obligations Secured and the Permissibility of Future Advances . . 48

2.5. Registering an International Interest . . 49
2.5.1. The Registry . . 50
2.5.2. Mechanics of Registration . . 51
2.5.3. Registration of Prospective International Interests . . 54
2.5.4. Duration and Discharge of a Registration . . 55
2.5.5. Searching the Registry . . 57
2.5.6. Errors in Search Results . . 59
2.6. Priority . . 59
2.6.1. The "First to File" Rule . . 60
2.6.2. Priority among Buyers and Competing Claimants . . 62
2.6.3. Subordination . . 63
2.7. The Effects of Installation, Removal, and Docking of a Space Asset . . 64
2.8. Assignment of Associated Rights and Related International Interests . . 65
2.8.1. Formalities of an Assignment of Associated Rights . . 66
2.8.2. Effect of an Assignment of Associated Rights . . 68
2.8.3. Registering an Assignment of an International Interest . . 69
2.8.4. Priority Issues Related to an Assignment of an International Interest . . 69
2.9. Assignment of Debtor's Rights . . 72
2.9.1. Formalities of a Rights Assignment . . 73
2.9.2. Effect of a Rights Assignment . . 74
2.9.3. Recording a Rights Assignment . . 75
2.9.4. Priority among Multiple Assignees . . 77
2.10. Sales . . 77
2.11. Remedies . . 80
2.11.1. The General Requirement of Commercial Reasonability . . 81
2.11.2. Default . . 82
2.11.3. Remedies for the Chargee . . 83
2.11.4. Redemption . . 88
2.11.5. Remedies for the Conditional Seller or Lessor . . 89
2.11.6. Additional Remedies . 90
2.11.7. Remedies for the Assignee of Associated Rights as Security . . 90
2.11.8. Remedies for the Assignee of Debtor's Rights as Security . . 91
2.11.9. Interim Relief Pending Final Adjudication . . 91
2.11.10. Remedies on Insolvency . . 94
2.11.11. Command Codes and Related Data . . 99
2.11.12. Procedural Requirements for the Enforcement of Remedies . . 99
2.11.13. Limitations on Remedies: Physically Linked Space Assets . . 100
2.11.14. Limitations on Remedies: Controlled Technology & Licenses . . 102
2.11.15. Limitations on Remedies: Public Services . . 104
2.11.16. Modifying Remedy Provisions by Agreement . . 106
2.12. Other Issues . . 107
2.12.1. Proceeds . . 107
2.12.2. Salvage Interests . . 109
2.12.3. Subrogation . . 111
2.12.4. Non-Consensual Rights and Interests . . 111
2.12.5. Jurisdiction and Choice of Forum . . 114
2.12.6. Waiver of Sovereign Immunity . . 116
2.12.7. Choice of Law . . 116
2.12.8. Interpreting the Convention and Protocol . . 117
2.12.9. The Convention's Relationship to its Protocols and to Other Treaties . . 119
2.12.1O. Declarations . . 120

3 The Relation of the Convention to the Law of Outer Space . . 123
3.1. An Overview of the Law of Outer Space . . 124
3.2. The Primacy of the Space Treaties . . 131
3.3. The Definitions ofSpace", "Space Object" and "Space Asset" . . 134
3.4. Liability for Damage Caused by a Space Object . . 141
3.4.1. An Overview of Liability in Space . . 141
3.4.2. How the Protocol May Increase Existing Tensions in the Law Governing Liability in Space . . 148
3.4.3. How the Convention May Assist in Determining Liability . . 154
3.5. The Convention's Relation to the Rescue and Return Agreement . . 158
3.5.1. An Overview of the Duty to Return Space Objects and Rescue Personnel . . 159
3.5.2. How the Rescue and Return Agreement Can Protect the Interests of a Creditor . . 162
3.5.3. How the Rescue and Return Agreement Could Harm the Interests of a Creditor . . 165
3.6. Jurisdiction under the Outer Space Treaty and Registration Convention . . 167
3.6.1. A Summary of the Convention's Provisions on Jurisdiction . . 168
3.6.2. How the Outer Space Treaty Affects the Jurisdictional Provisions of the Convention . . 169
3.6.3. The State of Registry's Retention of Jurisdiction after Transfer . . 173
3.7. The Convention's Relation to the Moon Agreement . . 177
3.8. The Convention's Relation to the ITU Instruments . . 181

Annexes
Annex 1: Convention on International Interests in Mobile Equipment . . 189
Annex 2: Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Space Assets . . 223
Bibliography . . 251
Index . . 259