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Also, if owner of aircraft is located in Minnesota, you may want to file statement with Secretary of State. Although it is not necessary to perfect your lien, it will provide notice to anyone who doesn’t know to check with Aircraft Registry.
This is called “perfecting” your mechanic’s lien and must be done within 90 days after you provide work, materials or service. Once perfected, you now have a lien on aircraft.
Perfection secures amount you are owed with aircraft. You then have several options. First, in order to sell aircraft, owner will need to pay you and obtain a release before owner can give a buyer clear title to aircraft.
Second, you also have ability to repossess and foreclose on aircraft. This means you can force a sale of aircraft and then receive payment out of proceeds of sale. Any excess money is given to owner.
Under first option, you run risk of having to wait until owner attempts to sell aircraft. The second option gives you more control, but is also more costly than simply waiting. However, under either option you are definitely in a better position to get paid than you would be without lien.
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 email@example.com or check out his website at www.aerolegalservices.com.