Page:China Civil Aviation Law 1995.pdf/14

 the People's Court and in the course of auction sale shall be deducted and paid first from the proceeds of the auction sale of the civil aircraft.

Article 22 A civil aircraft lien shall have priority over the mortgage of a civil aircraft.

Article 23 Where the obligatory rights provided in Article 19 of this Law are transferred, the civil aircraft liens attached thereto shall be transferred accordingly.

Article 24 A civil aircraft lien shall be enforced by the People's Court by arresting the civil aircraft that gave rise to the said civil aircraft lien.

Article 25 A civil aircraft lien shall be terminated at the expiry of three months commencing from the date of the end of rescue or custody; except that the creditor has registered his obligatory rights according to the provisions of

Article 20 of this Law and that the case is under one of the following circumstances:

(1) The creditor and debtor have reached agreement on the amount of the said obligatory rights; or

(2) The legal action concerning the obligatory rights has started.

A civil aircraft lien shall not be extinguished because of the transference of the ownership of the civil aircraft; except that the civil aircraft was the subject of — 12 —