aircraft mechanics liens in

Aircraft Mechanic Liens In Minnesota


By Gregory J. Reigel


© 2004 Reigel & Associates, Ltd./Aero Legal Services. All rights reserved.



If you accommodate storage, repair, continuation or other services to aircraft, you accept the adeptness to assert a lien on that aircraft and retain possession until you accept been paid. This is commonly referred to as a mechanic’s lien.


What isn’t as commonly accepted is that, in Minnesota, you don’t necessarily lose your lien rights if you no longer accept possession of the aircraft. The bearings arises when an owner pays you with a check and leaves with the aircraft. Subsequent, the bank dishonors the check. Any more what?


Under Minnesota Statute § 514.221, you can re-assert your mechanic’s lien against an aircraft by filing a verified statement and description of the aircraft and the assignment done or material furnished. The Statement must be filed with the “adapted office under the Uniform Commercial Code.” This would be the FAA’s Aircraft Registry in Oklahoma City, OK.


The verified statement must accommodate N-figure, accomplish and model of the aircraft, amount owed for the services and date of last assignment. The statement must be signed in ink, with title if on behalf of a corporation or limited liability company and must be accompanied by the $5.00 filing charge.


Again, if the owner of the aircraft is located in Minnesota, you may appetite to file the statement with the Secretary of State. Although it is not all-big to absolute your lien, it will accommodate apprehension to anyone who doesn’t apperceive to check with the Aircraft Registry.


This is called “perfecting” your mechanic’s lien and must be done within 90 days after you accommodate the assignment, materials or service. Once perfected, you any more accept a lien on the aircraft.


Perfection secures the amount you are owed with the aircraft. You then accept several options. Aboriginal, in adjustment to sell the aircraft, the owner will charge to pament you and access a release before the owner can accord a buyer ablaze title to the aircraft.


Second, you again accept the adeptness to repossess and foreclose on the aircraft. This means you can arm a sale of the aircraft and then accept payment out of the proceeds of the sale. Any excess almighty dollar is accustomed to the owner.


Under the aboriginal choice, you amble the risk of having to wait until the owner attempts to sell the aircraft. The second choice gives you added ascendancy, but is again added costly than simply waiting. However, under either choice you are definitely in a bigger position to amuse paid than you would be without the lien.

ABOUT THE AUTHOR
Greg is an aviation attorney, author and holds a commercial aviator certificate with instrument adjudjing. His practice concentrates on aviation litigation, including insurance matters and creditor’s rights, FAA certificate actions and aviation related transactional matters. He can be reached via e-mail at [email protected] or check out his website at www.aerolegalservices.com.

Originall posted December 21, 2011