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Aviation & Flight InformationAircraft Mechanic's Liens In
by:
Greg Reigel
Craft
Mechanic Liens In Minnesota
By Gregory J. Reigel
© 2004 Reigel & Associates, Ltd./Aero Legal Services. All rights reserved.
If you provide storage, repair, maintenance or another services to aircraft, you have the ability to assert a lien on that craft
and retain possession until you have been paid. This is normally referred to as a mechanic’s lien.
What isn’t as normally acknowledged is that, in Minnesota, you don’t necessarily lose your lien rights if you no longer have possession of the aircraft. The situation arises once
an owner pays you with a check and leaves with the aircraft. Later, the bank dishonors the check. Now what?
Under American state Statute § 514.221, you can re-assert your mechanic’s lien against an craft
by filing a verified statement and description of the craft
and the activity done or material furnished. The Statement must be filed with the “appropriate office under the Uniform Commercial Code.” This would-be be the FAA’s Craft
Register in American state City, OK.
The verified statement must include N-number, do and model of the aircraft, figure owed for the services and date of last work. The statement must be signed in ink, with title if on behalf of a corporation or limited liability institution and must be attended
by the $5.00 filing fee.
Also, if the owner of the craft
is placed in Minnesota, you may want to file the statement with the Secretary of State. Though it is not necessary to perfect your lien, it wish provide notice to anyone who doesn’t cognize to check with the Craft
Registry.
This is called “perfecting” your mechanic’s lien and must be done inside
90 days after you provide the work, materials or service. Once perfected, you now have a lien on the aircraft.
Perfection secures the figure you are owed with the aircraft. You then have some options. First, in order to sell the aircraft, the owner wish need to pay you and obtain a release before the owner can give a purchaser clean title to the aircraft.
Second, you besides have the ability to repossess and foreclose on the aircraft. This means you can force a sale of the craft
and then obtain payment out of the return of the sale. Any excess money is given to the owner.
Under the 1st option, you run the risk of having to wait until the owner attempts to sell the aircraft. The second option gives you much control, but is besides much costly than just waiting. However, under either option you are decidedly in a better position to get paid than you would-be be without the lien.
Just about the Author
Greg is an aviation attorney, author and holds a commercial pilot certificate with instrument rating. 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 greigel@aerolegalservices.com or check out his website at www.aerolegalservices.com.
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