Liens
A lien refers to a legal hold placed on an object by a party until all the debts are cleared by the debtor. In aviation, liens can broadly be classified as:
• Consensual liens
• Non-consensual liens
Consensual liens are mainly those that are filed on instruments or parts used in an aircraft. These include airframes, engines and propellers and spare parts used in the aircraft. The FAA requires these consensual liens to be filed in a certain manner as a recordation of “conveyances” which refer to instruments or objects that may affect the interests on an aircraft. For instance, the laws pertaining to airframes are much broader whereas those pertaining to engines and propellers have certain pre-requisites such as a specifically identified aircraft engine with a take-off horsepower of 550 or its equivalent. Spare parts can be recorded only if they are being maintained for the benefit of a certified air carrier. Thus, consensual security interests are perfected by recording …show more content…
Liens such as Mechanic’s liens, materialman’s liens and repairman’s liens are regarded as non-consensual liens. These liens mainly arise from supply of parts for an aircraft or from labor put into the repair of an aircraft. Such liens on airframes can be filed only if the claimant is in the contracting state as provided by the rules under FAA. With regards to liens on engines and spare parts they cannot be filed with the FAA as such liens already have priority over other registered interests and even if that doesn’t exist it can be declared in a statement released by a state bringing it into effect immediately. The other types of non-consensual liens are judgment liens and tax liens. These liens against airframes, engines, propellers and spare parts can be filed under the FAA. Only state tax liens can be filed as a federal tax lien is required by the Internal Revenue Code to be filed
A lien refers to a legal hold placed on an object by a party until all the debts are cleared by the debtor. In aviation, liens can broadly be classified as:
• Consensual liens
• Non-consensual liens
Consensual liens are mainly those that are filed on instruments or parts used in an aircraft. These include airframes, engines and propellers and spare parts used in the aircraft. The FAA requires these consensual liens to be filed in a certain manner as a recordation of “conveyances” which refer to instruments or objects that may affect the interests on an aircraft. For instance, the laws pertaining to airframes are much broader whereas those pertaining to engines and propellers have certain pre-requisites such as a specifically identified aircraft engine with a take-off horsepower of 550 or its equivalent. Spare parts can be recorded only if they are being maintained for the benefit of a certified air carrier. Thus, consensual security interests are perfected by recording …show more content…
Liens such as Mechanic’s liens, materialman’s liens and repairman’s liens are regarded as non-consensual liens. These liens mainly arise from supply of parts for an aircraft or from labor put into the repair of an aircraft. Such liens on airframes can be filed only if the claimant is in the contracting state as provided by the rules under FAA. With regards to liens on engines and spare parts they cannot be filed with the FAA as such liens already have priority over other registered interests and even if that doesn’t exist it can be declared in a statement released by a state bringing it into effect immediately. The other types of non-consensual liens are judgment liens and tax liens. These liens against airframes, engines, propellers and spare parts can be filed under the FAA. Only state tax liens can be filed as a federal tax lien is required by the Internal Revenue Code to be filed