Avionics News June 2013 - 78

legislative

B Y
J A S O N
D I C K S T E I N
AEA GENERAL COUNSEL

Filing a Lien
Protecting Your Right to Get Paid

A

lien is a tool creditors use
in order to improve the
chances they will get paid
on a debt. Like any tool,
liens are valuable when they are
used correctly; but when used incorrectly, they may fail to fulfill their
expected function, and, in some
cases, they can actually injure the
person who wields them.
This year, Avionics News is providing a series of articles examining liens and providing guidance on what Aircraft Electronics
Association members ought to be
thinking about when considering the
use of liens as a tool for helping to
ensure payment.
Last month in this column, we
examined basic forms of liens that
may be useful to repair stations and
fundamental validity questions. In
this month’s column, we address
some concerns reflecting the filing
of liens with the Federal Aviation
Administration registry so that the
lien may be enforceable against
subsequent aircraft owners. Next
78

avionics news

•

june

2013

month, we will examine some of
the industry’s questions about what
happens if an aircraft registration
expires when there is a lien against
it, or immediately before a lien
can be filed. Finally, in the fourth
installment, we will examine strate-

appropriately so that it is enforceable). Repair station owners who
want to file liens to protect their
financial interests will, therefore,
need to take both elements into consideration when they are considering filing a lien.

There are a number of rules that apply
in these matters, and the rules of
precedence can be affected by both
federal and state law.
gies for enforcing a lien in order to
use the value of the aircraft to “get
paid” when your customer has failed
to pay the outstanding bill for services.
In order to be a useful tool, a
lien should be enforceable. When
examining the enforceability of a
lien, it is important the lien be substantively valid (it is a good lien)
and procedurally proper (it was filed

PROCEDURAL REQUIREMENTS
FOR NOTICE
Generally, in order to be valid
against a subsequent owner of an
aircraft, the subsequent owner must
have prior notice of the lien. This
means that if the subsequent owner
does not know you have a lien
against the aircraft, then the sale of
the aircraft may extinguish your lien
against the aircraft.



Avionics News June 2013

Table of Contents for the Digital Edition of Avionics News June 2013

Point of Communication
AEA Now
The View From Washington
International News and Regulatory Updates
Electrical-System Manager
Member Profile
Let's Get to Work!
Advancing Avionics
Startup Stories
Member Profile
The History of Avionics
Avionics News Through the Years
A Conversation With...
Legal Ease
Business Basics
AEAviators
What's New
Avionics News June 2013 - Intro
Avionics News June 2013 - Cover1
Avionics News June 2013 - Cover2
Avionics News June 2013 - 1
Avionics News June 2013 - 2
Avionics News June 2013 - 3
Avionics News June 2013 - Point of Communication
Avionics News June 2013 - 5
Avionics News June 2013 - AEA Now
Avionics News June 2013 - 7
Avionics News June 2013 - 8
Avionics News June 2013 - 9
Avionics News June 2013 - 10
Avionics News June 2013 - 11
Avionics News June 2013 - 12
Avionics News June 2013 - 13
Avionics News June 2013 - The View From Washington
Avionics News June 2013 - 15
Avionics News June 2013 - International News and Regulatory Updates
Avionics News June 2013 - 17
Avionics News June 2013 - 18
Avionics News June 2013 - 19
Avionics News June 2013 - Electrical-System Manager
Avionics News June 2013 - 21
Avionics News June 2013 - 22
Avionics News June 2013 - 23
Avionics News June 2013 - Member Profile
Avionics News June 2013 - 25
Avionics News June 2013 - 26
Avionics News June 2013 - 27
Avionics News June 2013 - Let's Get to Work!
Avionics News June 2013 - 29
Avionics News June 2013 - 30
Avionics News June 2013 - 31
Avionics News June 2013 - 32
Avionics News June 2013 - 33
Avionics News June 2013 - 34
Avionics News June 2013 - 35
Avionics News June 2013 - 36
Avionics News June 2013 - 37
Avionics News June 2013 - Advancing Avionics
Avionics News June 2013 - 39
Avionics News June 2013 - 40
Avionics News June 2013 - 41
Avionics News June 2013 - 42
Avionics News June 2013 - 43
Avionics News June 2013 - 44
Avionics News June 2013 - 45
Avionics News June 2013 - 46
Avionics News June 2013 - 47
Avionics News June 2013 - 48
Avionics News June 2013 - 49
Avionics News June 2013 - 50
Avionics News June 2013 - 51
Avionics News June 2013 - 52
Avionics News June 2013 - 53
Avionics News June 2013 - 54
Avionics News June 2013 - 55
Avionics News June 2013 - 56
Avionics News June 2013 - 57
Avionics News June 2013 - Startup Stories
Avionics News June 2013 - 59
Avionics News June 2013 - 60
Avionics News June 2013 - 61
Avionics News June 2013 - 62
Avionics News June 2013 - 63
Avionics News June 2013 - Member Profile
Avionics News June 2013 - 65
Avionics News June 2013 - 66
Avionics News June 2013 - 67
Avionics News June 2013 - The History of Avionics
Avionics News June 2013 - 69
Avionics News June 2013 - 70
Avionics News June 2013 - 71
Avionics News June 2013 - 72
Avionics News June 2013 - 73
Avionics News June 2013 - Avionics News Through the Years
Avionics News June 2013 - 75
Avionics News June 2013 - A Conversation With...
Avionics News June 2013 - 77
Avionics News June 2013 - Legal Ease
Avionics News June 2013 - 79
Avionics News June 2013 - 80
Avionics News June 2013 - 81
Avionics News June 2013 - 82
Avionics News June 2013 - 83
Avionics News June 2013 - Business Basics
Avionics News June 2013 - 85
Avionics News June 2013 - 86
Avionics News June 2013 - 87
Avionics News June 2013 - AEAviators
Avionics News June 2013 - 89
Avionics News June 2013 - What's New
Avionics News June 2013 - 91
Avionics News June 2013 - 92
Avionics News June 2013 - 93
Avionics News June 2013 - 94
Avionics News June 2013 - 95
Avionics News June 2013 - 96
Avionics News June 2013 - Cover3
Avionics News June 2013 - Cover4
https://www.nxtbook.com/allen/avne/60-10
https://www.nxtbook.com/allen/avne/60-9
https://www.nxtbook.com/allen/avne/60-8
https://www.nxtbook.com/allen/avne/60-7
https://www.nxtbook.com/allen/avne/60-6
https://www.nxtbook.com/allen/avne/60-5
https://www.nxtbook.com/allen/avne/60-4
https://www.nxtbook.com/allen/avne/60-3
https://www.nxtbook.com/allen/avne/60-2
https://www.nxtbook.com/allen/avne/60-1
https://www.nxtbook.com/allen/avne/59-12
https://www.nxtbook.com/allen/avne/59-11
https://www.nxtbook.com/allen/avne/59-10
https://www.nxtbook.com/allen/avne/59-9
https://www.nxtbook.com/allen/avne/59-8
https://www.nxtbook.com/allen/avne/59-7
https://www.nxtbook.com/allen/avne/59-6
https://www.nxtbook.com/allen/avne/59-5
https://www.nxtbook.com/allen/avne/59-4
https://www.nxtbook.com/allen/avne/59-3
https://www.nxtbook.com/allen/avne/59-2
https://www.nxtbook.com/allen/avne/59-1
http://www.brightcopy.net/allen/avne/58-12
http://www.brightcopy.net/allen/avne/58-11
http://www.brightcopy.net/allen/avne/58-10
http://www.brightcopy.net/allen/avne/58-9
http://www.brightcopy.net/allen/avne/58-8
http://www.brightcopy.net/allen/avne/58-7
http://www.brightcopy.net/allen/avne/58-6
http://www.brightcopy.net/allen/avne/58-5
http://www.brightcopy.net/allen/avne/58-4
http://www.brightcopy.net/allen/avne/58-3
http://www.brightcopy.net/allen/avne/58-2
http://www.brightcopy.net/allen/avne/58-1
http://www.brightcopy.net/allen/avne/57-12
http://www.brightcopy.net/allen/avne/57-11
http://www.brightcopy.net/allen/avne/57-10
http://www.brightcopy.net/allen/avne/57-9
http://www.brightcopy.net/allen/avne/57-8
http://www.brightcopy.net/allen/avne/57-7
http://www.brightcopy.net/allen/avne/57-6
http://www.brightcopy.net/allen/avne/57-5
http://www.brightcopy.net/allen/avne/57-4
http://www.brightcopy.net/allen/avne/57-3
http://www.brightcopy.net/allen/avne/57-2
http://www.brightcopy.net/allen/avne/57-1
http://www.brightcopy.net/allen/avne/56-12
http://www.brightcopy.net/allen/avne/56-11
http://www.brightcopy.net/allen/avne/56-10
http://www.brightcopy.net/allen/avne/56-9
http://www.brightcopy.net/allen/avne/56-8
http://www.brightcopy.net/allen/avne/56-7
http://www.brightcopy.net/allen/avne/56-6
http://www.brightcopy.net/allen/avne/56-5
http://www.brightcopy.net/allen/avne/56-4
http://www.brightcopy.net/allen/avne/56-3
http://www.brightcopy.net/allen/avne/56-2
http://www.brightcopy.net/allen/avne/56-1
http://www.brightcopy.net/allen/avne/55-12
http://www.brightcopy.net/allen/avne/55-11
http://www.brightcopy.net/allen/avne/55-10
http://www.brightcopy.net/allen/avne/55-9
http://www.brightcopy.net/allen/avne/55-8
http://www.brightcopy.net/allen/avne/55-7
http://www.brightcopy.net/allen/avne/55-6
http://www.brightcopy.net/allen/avne/55-5
http://www.brightcopy.net/allen/avne/55-4
http://www.brightcopy.net/allen/avne/55-3
http://www.brightcopy.net/allen/avne/55-02
http://www.brightcopy.net/allen/avne/55-01
http://www.brightcopy.net/allen/avne/54-12
http://www.brightcopy.net/allen/avne/54-11
http://www.brightcopy.net/allen/avne/54-10
http://www.brightcopy.net/allen/avne/54-9
http://www.brightcopy.net/allen/avne/54-8
http://www.brightcopy.net/allen/avne/54-7
http://www.brightcopy.net/allen/avne/54-6
http://www.brightcopy.net/allen/avne/54-5
http://www.brightcopy.net/allen/avne/54-4
http://www.brightcopy.net/allen/avne/54-3
http://www.brightcopy.net/allen/avne/54-2
http://www.brightcopy.net/allen/avne/54-1
http://www.brightcopy.net/allen/avne/53-12
http://www.brightcopy.net/allen/avne/53-11
http://www.brightcopy.net/allen/avne/53-10
http://www.brightcopy.net/allen/avne/53-9
http://www.brightcopy.net/allen/avne/53-8
http://www.brightcopy.net/allen/avne/53-7
http://www.brightcopy.net/allen/avne/53-6
http://www.brightcopy.net/allen/avne/53-5
http://www.brightcopy.net/allen/avne/53-4
http://www.brightcopy.net/allen/avne/53-3
http://www.brightcopy.net/allen/avne/53-2
http://www.brightcopy.net/allen/avne/53-1
http://www.brightcopy.net/allen/avne/52-12
http://www.brightcopy.net/allen/avne/52-11
http://www.brightcopy.net/allen/avne/52-10
http://www.brightcopy.net/allen/avne/52-9
http://www.brightcopy.net/allen/avne/52-8
https://www.nxtbook.com/allen/avne/52-7
https://www.nxtbook.com/allen/avne/52-6
https://www.nxtbook.com/allen/avne/52-5
https://www.nxtbook.com/allen/avne/52-4
https://www.nxtbook.com/allen/avne/52-3
https://www.nxtbook.com/allen/avne/52-2
https://www.nxtbook.com/allen/avne/52-1
https://www.nxtbook.com/allen/avne/51-12
https://www.nxtbook.com/allen/avne/51-11
https://www.nxtbook.com/allen/avne/51-10
https://www.nxtbook.com/allen/avne/51-9
https://www.nxtbook.com/allen/avne/51-8
https://www.nxtbook.com/allen/avne/51-7
https://www.nxtbook.com/allen/avne/51-6
https://www.nxtbook.com/allen/avne/51-5
https://www.nxtbook.com/allen/avne/51-4
https://www.nxtbook.com/allen/avne/51-3
https://www.nxtbook.com/allen/avne/51-2
https://www.nxtbook.com/allen/avne/51-1
https://www.nxtbook.com/allen/avne/50-12
https://www.nxtbook.com/allen/avne/50-11
https://www.nxtbook.com/allen/avne/50-10
https://www.nxtbook.com/allen/avne/50-9
https://www.nxtbook.com/allen/avne/50-8
https://www.nxtbook.com/allen/avne/50-7
https://www.nxtbook.com/allen/avne/50-6
https://www.nxtbook.com/allen/avne/50-5
https://www.nxtbook.com/allen/avne/50-4
https://www.nxtbook.com/allen/avne/50-3
https://www.nxtbook.com/allen/avne/50-2
https://www.nxtbook.com/allen/avne/50-1
https://www.nxtbook.com/allen/avne/49-12
https://www.nxtbook.com/allen/avne/49-11
https://www.nxtbook.com/allen/avne/49-10
https://www.nxtbook.com/allen/avne/49-9
https://www.nxtbook.com/allen/avne/49-8
https://www.nxtbook.com/allen/avne/49-7
https://www.nxtbook.com/allen/avne/49-6
https://www.nxtbook.com/allen/avne/49-5
https://www.nxtbook.com/allen/avne/49-4
https://www.nxtbook.com/allen/avne/49-3
https://www.nxtbook.com/allen/avne/49-2
https://www.nxtbook.com/allen/avne/49-1
https://www.nxtbook.com/allen/avne/48-12
https://www.nxtbook.com/allen/avne/48-11
https://www.nxtbookmedia.com