- with readers working within the Aerospace & Defence and Transport industries
What is the new legislation?
From the 1st October 2026 a new Isle of Man legislation named the Civil Aviation (Mortgaging of Aircraft) Order 2026 will modernise the rules for how lenders can register a legal claim (mortgage) against an aircraft. To support the new law, Isle of Man Aircraft Registry (‘IOMAR’) will also publish a new Registry Publication (RP) on the Mortgaging of Aircraft, providing detailed requirements and guidance.
But why does this matter?
It’s no secret that the Isle of Man has one of the most favourable aircraft registries in the world. So now, when banks or lessors finance an aircraft, they need a way to legally secure their interest, very similar to how a bank would put a lien against your house. This legislation ensures that framework stays efficient and up to date.
What you need to know
Before the legislation comes into effect in October, IOMAR has released the following headline provisions:
- Consent and priority remain unchanged: Mortgagee consent is still required before an aircraft can be deregistered, and registered mortgages continue to rank in priority by order of registration, including in relation to interests registered under the Cape Town Convention.
- Tighter timelines: Priority notices will now expire after 30 working days, with extensions permitted up to a maximum of 60 working days and any changes to information provided by or on behalf of a mortgagee must be notified as soon as practicable and no later than 2 working days.
- Greater privacy: Public inspection of the Register of Aircraft Mortgages will be limited to confirming whether a mortgage and/or priority notice is registered, along with the register number, registered date, and status. New protections will restrict disclosure of detailed mortgage information, such as the mortgagee’s name under Freedom of Information legislation.
- More flexibility in how requirements are set: Applications for services and supporting information will be prescribed by IOMAR through publications, forms, and online guidance rather than in legislation, giving the registry more agility to update processes.
- New deregistration provisions: Mortgagees will have the ability to deregister an undischarged mortgage, and mortgages will also be automatically deregistered upon discharge or the cancellation of aircraft registration with mortgagee consent.
- Register amendments: New procedures will allow the Department to propose amendments to the Register, together with rights of representation and appeal.
Practical details if you are affected
The new rules apply immediately from 1 October 2026 to:
- Existing registered mortgages
- Applications in progress
- All new applications
In the coming summer months, IOMAR will publish detailed guidance and procedural requirements such as forms and applications. These will sit within the Registry Publications rather than the legislation itself, giving the registry more flexibility to update processes without requiring new legislation.
If you are involved in aircraft finance or leasing through the Isle of Man, the main takeaway is modernisation and the core protections lenders rely on are preserved, with added privacy, clearer timelines, and more administrative flexibility.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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