Subject to the limitations set forth in this chapter, every person has a lien dependent upon possession for the compensation to which he is legally entitled for making repairs or performing labor upon, and furnishing supplies or materials for, and for the storage, repair, or safekeeping of, any aircraft, also for reasonable charges for the use of any landing aid furnished such aircraft and reasonable landing fees.
Of the Enforcement of LiensLiens on Aircraft
Section § 1208.61
If someone works on an aircraft by doing repairs, providing supplies, or storing it, they have a right to hold onto the aircraft until they're paid for their services. This includes charges for using landing aids and landing fees.
aircraft lien possession repair compensation
Section § 1208.62
If someone performs work or services on an aircraft at the request of someone who doesn't legally own the aircraft, any lien they claim over $250 is invalid unless they notify the aircraft's legal owner and any mortgage holder before starting the work and get their written consent. The legal owner is considered to be the person listed on the federal aircraft registration certificate.
That portion of such lien in excess of two hundred fifty dollars ($250) for work or services rendered or performed at the request of any person other than the holder of the legal title is invalid, unless prior to commencing such work or service the person claiming the lien gives actual notice to the legal owner and the mortgagee, if any, of the aircraft, and the written consent of the legal owner and the mortgagee of the aircraft is obtained before such work or services are performed. For the purposes of this chapter the person named in the federal aircraft registration certificate issued by the Administrator of Civil Aeronautics shall be deemed to be the legal
owner.
aircraft lien federal aircraft registration legal owner consent
Section § 1208.63
This law allows someone with a lien on an aircraft for unpaid labor or materials to transfer that lien to someone else through a written agreement. When they do this, they must notify the legal owner of the aircraft in writing about the change, including the new person's contact details. Notification has to be done in person or through registered mail.
Any lien for labor or materials provided for in this chapter may be assigned by written instrument accompanied by delivery of possession of the aircraft subject to the lien and the assignee may exercise the rights of a lienholder pursuant to this chapter. Any lienholder assigning a lien shall at the time of the assignment give written notice, either by personal delivery or by registered mail with return receipt requested, to the legal owner of the property covered by the lien, including the name and address of the person to whom the lien is assigned.
aircraft lien labor lien materials lien
Section § 1208.64
If someone loses their legal claim or hold (lien) on an aircraft because they were tricked or scammed out of possessing it, getting the aircraft back restores their claim. However, this revived claim is weaker compared to any rights or interests someone else obtained honestly and with compensation while the original holder was without possession.
Whenever the lien upon any aircraft is lost by reason of the loss of possession through trick, fraud, or device, the repossession of such aircraft by the lienholder revives the lien, but the lien so revived is subordinate to any right, title, or interest of any person under any sale, transfer, encumbrance, lien, or other interest acquired or secured in good faith and for value between the time of the loss of possession and the time of repossession.
aircraft lien loss of possession trick or fraud
Section § 1208.65
If someone owes you money because they have a lien on their property and they don't pay within 10 days after it's due, you can sell their property at a public auction to get your money and cover sale costs.
If the lienholder is not paid the amount due within 10 days after it becomes due, the lienholder may proceed to sell the property, or so much thereof as is necessary to satisfy the lien and costs of sale, at public auction.
lienholder 10 days public auction
Section § 1208.66
Before selling an aircraft to settle a lien, the person holding the lien must advertise the sale in a local newspaper. If there's no local newspaper, notices should be posted publicly in three locations for at least 10 days before the sale. Additionally, the lienholder must send a notice by registered mail to the legal owner according to the aircraft's registration at least 20 days before the sale.
Prior to any such sale the lienholder shall publish a notice of the sale pursuant to Section 6062 of the Government Code in a newspaper published in the county in which the aircraft is situated, or if there is no such newspaper, by posting notice of sale in three of the most public places in the city or place where such aircraft is to be sold for 10 days previous to the date of the sale. Prior to the sale of any aircraft to satisfy any such lien, 20 days’ notice by registered mail shall be given to the legal owner as it appears in the registration certificate.
aircraft sale lienholder notice of sale
Section § 1208.67
If something is sold to pay off a debt (or lien), the money from the sale should first go towards paying off that debt and any costs involved in selling or maintaining the item. Any leftover money should then be given to the actual owner of the item.
The proceeds of the sale must be applied to the discharge of the lien and the cost of keeping and selling the property. The remainder, if any, shall be paid to the legal owner.
sale proceeds discharge lien legal owner payment
Section § 1208.68
If you legally own an aircraft that was sold due to an unpaid lien, you have 20 days after the sale to buy it back. You must pay off the lien, cover all sale costs and expenses, and pay 12% annual interest from when the payment was due or when the money was initially given, until you pay it back.
Within 20 days after the sale, the legal owner may redeem the aircraft so sold upon the payment of the amount of the lien, all costs and expenses of sale, and interest on such sum at the rate of 12 percent a year from the date it became due or the date when the amounts were advanced until the repayment.
redeem aircraft aircraft lien sale costs
Section § 1208.69
This law makes it a misdemeanor if someone sneakily or dishonestly takes control of an aircraft that has a legal claim on it, using tricks or cheating against the person who holds the claim.
It is a misdemeanor for any person to obtain possession of all or any part of any aircraft subject to a lien under this chapter through surreptitious removal or by trick, fraud, or device perpetrated upon the lienholder.
misdemeanor aircraft possession lienholder
Section § 1208.70
This law doesn't apply to planes used by U.S. or foreign airlines that are certified to provide air transportation by the U.S. Civil Aeronautics Board or its successor.
This chapter shall not apply to aircraft operated exclusively by an air carrier or a foreign air carrier, as defined in subdivisions (2) and (19) of Section 1 of Chapter 601 of the Statutes of the Seventy-fifth United States Congress, Second Session (1938), engaged in air transportation as defined in subdivision (10) of the same section while there is in force a certificate by, or a foreign air carrier permit of, the Civil Aeronautics Board of the United States, or its successor, authorizing such air carrier to engage in such transportation.
aircraft exemption air carrier foreign air carrier
