An aircraft mechanic's lien release bond functions much like a lien discharge bond filed to release a lien filed by a contractor or material supplier. When an airport authority or aircraft service specialist provides storage, repair, maintenance or other services to a vessel he or she generally retains the right to perfect a lien against that aircraft and retain possession of the same until he or she receives payment for the services provided to the aircraft. The parties can arrive at a resolution by negotiation or litigation however that puts the vessel out of use, sometimes for long periods of time. The aircraft mechanic's lien release mechanism is a quick, efficient way to dissolve the lien.
Aircraft mechanic's liens must be filed with the Federal Aviation Administration's registry of air vessels. The lien discharge bond must be filed with the FAA however in practice the bond should be accompanied by a court order directing the FAA to accept the bond in lieu of lien. There are several states that have specific statutes (codes of civil procedure) that impose local/state court obligations with regard to liening aircraft. Among them:
Once a lienor has commenced litigation to liquidate the aircraft in satisfaction of the debt, an aircraft lien release bond may by presented. The amount of the bond will generally be fixed at the amount of the lien claim plus some additional amount to account for interest, costs and attorney fees. A good "rule of thumb" is 125% to 150% of the lien amount. The lien thus moves OFF of the aircraft and ON to the surety bond.
National surety bond leader, Surety One, Inc. is THE most responsive underwriter of lien discharge bonds in the nation. Our expertise in drafting surety bond forms for acceptable recording and presentation to the Federal Aviation Administration's registry, same day underwriting, immediate bond execution and delivery are unparalleled. We underwrite aircraft mechanic's lien release bonds in all fifty states, Puerto Rico and U.S. Virgin Islands. Call (800) 373-2804, email Underwriting@SuretyOne.com or click here for a live chat for application materials and assistance with your lien release bond or any other surety need.
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