Import of Aircraft on Operating Lease - Security Deposits

Security deposit remittance for aircraft operating leases allowed without standby guarantees, subject to bank, regulatory and maturity conditions.

Authorised Dealer banks may permit remittance of security deposits to lessors for import of aircraft on operating lease without standby letters of credit or guarantees, subject to the AD's satisfaction of bona fides, requisite civil aviation approvals, bank board policy or specific board approval for advance remittances, and a maturity date not later than the last lease instalment or date of aircraft return; deposits may be adjusted against rentals and any balance repatriated before lease expiry. Public sector or government lessees may remit above the private ceiling only with the same conditions and a Ministry of Finance waiver of bank guarantee.