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H0634aa.........................................................by BUSINESS
AIRCRAFT IMPROVEMENT LIENS - Adds to existing law relating to aircraft
improvement liens to provide for special liens dependent on possession; to
provide for statutory liens following surrender of possession; to provide
for notices of lien; to provide for recording of lien notices; to define
owners or authorized agents of owners; to provide for the priority of
liens; and to provide for the enforcement, release and discharge of liens.
02/12 House intro - 1st rdg - to printing
02/13 Rpt prt - to Bus
02/26 Rpt out - to Gen Ord
02/28 Rpt out amen - to engros
03/01 Rpt engros - 1st rdg - to 2nd rdg as amen
03/04 2nd rdg - to 3rd rdg as amen
03/05 3rd rdg as amen - PASSED - 39-28-3
AYES -- Aikele, Bedke, Bell, Bieter, Black, Block, Boe, Bolz,
Campbell, Collins, Crow, Deal, Denney, Ellis, Field(20), Gagner,
Gould, Henbest, Higgins, Jaquet, Kellogg(Duncan), Kunz, Mader,
Martinez, McKague, Meyer, Mortensen, Pomeroy, Raybould, Robison,
Sellman, Smith(33), Smylie, Stevenson, Stone, Tilman, Trail, Wood,
Mr. Speaker
NAYS -- Barraclough, Barrett, Bradford, Bruneel, Clark, Cuddy,
Ellsworth, Eskridge, Field(13), Hadley, Hammond, Harwood, Hornbeck,
Jones, Kendell, Lake, Langford, Loertscher, Moyle, Pearce, Pischner,
Ridinger, Roberts, Sali, Schaefer, Smith(23), Wheeler, Young
Absent and excused -- Callister, Montgomery, Shepherd
Floor Sponsor - Higgins
Title apvd - to Senate
03/06 Senate intro - 1st rdg - to Com/HuRes
03/08 Rpt out - rec d/p - to 2nd rdg
03/11 2nd rdg - to 3rd rdg
03/15 3rd rdg - PASSED - 22-13-0
AYES -- Andreason, Brandt, Bunderson, Burtenshaw, Davis, Dunklin,
Goedde, Hill, Ingram, King-Barrutia, Little, Lodge, Marley, Noh,
Risch, Schroeder, Sorensen, Stegner, Stennett, Thorne, Wheeler,
Williams
NAYS -- Boatright, Branch, Cameron, Darrington, Deide, Frasure,
Geddes, Hawkins, Ipsen, Keough, Richardson, Sandy, Sims
Absent and excused -- None
Floor Sponsor - Dunklin
Title apvd - to House
03/15 To enrol
Rpt enrol - Sp signed - Pres signed
03/18 To Governor
03/27 Governor signed
Session Law Chapter 371
Effective: 07/01/02
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 634
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO AIRCRAFT IMPROVEMENT LIENS; AMENDING TITLE 45, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 11, TITLE 45, IDAHO CODE, TO PROVIDE FOR SPECIAL
4 LIENS DEPENDENT ON POSSESSION, TO PROVIDE FOR STATUTORY LIENS FOLLOWING
5 SURRENDER OF POSSESSION, TO PROVIDE FOR NOTICES OF LIEN, TO PROVIDE FOR
6 RECORDING OF LIEN NOTICES, TO DEFINE OWNERS OR AUTHORIZED AGENTS OF
7 OWNERS, TO PROVIDE FOR THE PRIORITY OF LIENS, TO PROVIDE FOR THE ENFORCE-
8 MENT OF LIENS AND TO PROVIDE FOR THE RELEASE AND DISCHARGE OF LIENS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Title 45, Idaho Code, be, and the same is hereby amended
11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
12 ter 11, Title 45, Idaho Code, and to read as follows:
13 CHAPTER 11
14 AIRCRAFT IMPROVEMENT LIENS
15 45-1101. AIRCRAFT IMPROVEMENT LIEN -- SPECIAL LIEN DEPENDENT UPON POSSES-
16 SION. (1) Any person, firm, or corporation who expends labor, skill, or mate-
17 rials upon an aircraft, aircraft engines, propellers, appliances, spare parts,
18 or related equipment, at the request of its owner, reputed owner, authorized
19 agent of the owner, or lawful possessor of the aircraft, has a special lien,
20 dependent upon possession, on the aircraft for the just and reasonable charges
21 for the labor performed and material furnished up to the amount of the written
22 estimate or subsequent oral or written modifications thereto.
23 (2) Provided however, a person, firm, or corporation expending labor,
24 skill or materials pursuant to the provisions of subsection (1) of this sec-
25 tion shall not have a special lien on the aircraft unless the person, firm, or
26 corporation delivers a written estimate regarding the nature and cost of
27 repair work to the owner, reputed owner, authorized agent of the owner or law-
28 ful possessor of the aircraft prior to expending labor, skill or materials on
29 the aircraft.
30 (3) If not paid within two (2) months after the work is done, the person,
31 firm or corporation may proceed to sell the property at public auction after
32 first providing written notice of the impending sale to the owner, reputed
33 owner, authorized agent of the owner, or lawful possessor of the aircraft, as
34 well as any known secured parties or lienholders, by United States mail, cer-
35 tified, return receipt requested, or equivalent private courier service that
36 provides evidence of date of delivery of mail. The person, firm or corporation
37 shall give ten (10) days' public notice of the sale by advertising in some
38 newspaper published in the county in which the work was done; or, if there be
39 no newspaper published in the county, then by posting notices of the sale in
40 three (3) public places in the town where the work was done, for ten (10) days
41 previous to the sale. The proceeds of the sale must be applied to the dis-
42 charge of the lien and the cost of keeping and selling the property; the
2
1 remainder, if any, must be paid over to the other secured parties or lienhold-
2 ers, if any, and the owner.
3 45-1102. SURRENDER OF POSSESSION -- STATUTORY LIEN. (1) Any person, firm,
4 or corporation who expends labor, skill, or materials upon an aircraft, air-
5 craft engines, propellers, appliances, or spare parts, at the request of its
6 owner, reputed owner, or authorized agent of the owner, or lawful possessor of
7 the aircraft, has a lien upon the aircraft, or related equipment, for the con-
8 tract price of the expenditure, or in the absence of a contract price, for the
9 reasonable value of the expenditure.
10 (2) The statutory lien created pursuant to this section:
11 (a) Is applicable to any civil aircraft engine, aircraft propeller, or
12 aircraft appliance which is capable of having the ownership, or an inter-
13 est in the ownership, affected by a conveyance, recorded at the federal
14 aviation administration (FAA) aircraft registry;
15 (b) Is not dependent upon possession by the repairperson of the property
16 which is subject to the lien;
17 (c) Is dependent upon the recordation of the lien at the FAA aircraft
18 registry in accordance with section 45-1103, Idaho Code;
19 (d) Must be created by written contract between the parties, and any sub-
20 sequent oral or written modifications thereto. The written contract must
21 be signed by the customer, and predate the commencement of work for which
22 the lien is applicable.
23 45-1103. NOTICE OF LIEN -- RECORDATION. The statutory lien created pursu-
24 ant to section 45-1102, Idaho Code:
25 (1) Is not valid unless and until it is recorded with the FAA aircraft
26 registry in the manner and in the form generally required for the "Recording
27 of Aircraft Titles and Security Documents" pursuant to 14 CFR 49.
28 (2) Is valid upon recordation by the FAA aircraft registry of a written
29 document entitled "NOTICE OF AIRCRAFT LIEN." This document shall:
30 (a) Be signed by the repairperson or by a duly authorized agent or attor-
31 ney of the repairperson; and
32 (b) Be verified by the person signing the notice of lien upon that
33 person's personal knowledge of the matters stated in the notice of lien,
34 and which shall affirmatively state: "I declare under penalty of perjury,
35 in accordance with the laws of the state of Idaho and of the laws of the
36 United States of America, that the matters stated herein are true and cor-
37 rect upon my information and belief."
38 (c) Contain the date and place of signing of the notice of lien.
39 (3) The notice of lien referred to in subsection (2) of this section
40 shall contain the following information:
41 (a) The United States registration number, make, model and serial number
42 of the aircraft subject to the lien;
43 (b) The name of the manufacturer, the model, and the serial number of all
44 applicable engines, propellers or appliances subject to the lien, to the
45 extent they are not otherwise identifiable merely by reference to the air-
46 craft registration number;
47 (c) The name, address and business telephone number of the repairperson
48 asserting the lien;
49 (d) The name, address and business telephone number of the registered
50 owner of the civil aircraft or other property subject to the lien;
51 (e) The name, address and business telephone number of the person con-
52 senting to the performance of the work giving rise to the lien;
53 (f) The amount of the lien, exclusive of prospective storage costs;
3
1 (g) A narrative statement describing the nature of the work accomplished;
2 (h) The affirmative statement that a copy of the notice of lien is con-
3 currently being sent by United States mail, certified, return receipt
4 requested, or equivalent private courier service that provides evidence of
5 date of delivery of mail, to both the registered owner and to the person
6 consenting to the work;
7 (i) The date of last services or materials provided.
8 (4) No notice of lien pursuant to subsection (2) of this section is valid
9 unless it is presented for recording at the FAA registry within one hundred
10 eighty (180) days of the completion of the work giving rise to the lien.
11 45-1104. PERSONS CONSIDERED OWNER OF AIRCRAFT OR RELATED EQUIPMENT, OR
12 AUTHORIZED AGENT OF OWNER. The following persons are considered the owner of
13 an aircraft or related equipment, or the authorized agent of the owner, for
14 the purposes of this chapter:
15 (1) A person in possession of the aircraft or related equipment under an
16 agreement to purchase it, whether title to the aircraft or related equipment
17 is in the possession of the person or the vendor;
18 (2) A person in lawful possession of the aircraft or related equipment.
19 45-1105. PRIORITY. A lien under section 45-1102, Idaho Code, when
20 recorded in accordance with section 45-1103, Idaho Code, is superior to and
21 preferred to:
22 (1) A lien, mortgage or encumbrance that attaches to the aircraft, or
23 related equipment, after the starting of labor or services or the furnishing
24 of the materials as provided in section 45-1102, Idaho Code;
25 (2) A prior lien, mortgage or other encumbrance, when the person furnish-
26 ing the materials or performing the services did not have actual or construc-
27 tive notice of the prior lien, mortgage or encumbrance, or the prior lien,
28 mortgage or encumbrance was not recorded or filed in the manner provided by
29 law.
30 (3) A lien that attaches to the aircraft or equipment on the basis of a
31 security interest, if, prior to the expenditure of labor, skill or materials
32 upon the aircraft or equipment, the person planning to make the expenditure
33 gives notice of that intention by United States mail, certified, return
34 receipt requested, or equivalent private courier service that provides evi-
35 dence of date of delivery of mail, to any holder of a security interest of
36 record at the FAA prior to commencing such expenditure, and the holder of the
37 security interest does not respond within three (3) days of receipt of notice
38 noting its opposition to the making of such an expenditure of labor, skill or
39 materials.
40 45-1106. ENFORCEMENT OF LIEN. (1) A suit to enforce a lien described in
41 section 45-1102, Idaho Code, must be brought within twelve (12) months after
42 the lien is recorded.
43 (2) The practice and procedure to enforce a lien shall be governed by the
44 law applicable to the foreclosure of mechanics' and materialmen's liens pro-
45 vided however, that notice requirements shall also extend to secured parties
46 or lienholders of record with the federal aviation administration.
47 (3) Any judgment entered by the court shall be deemed to be a
48 "conveyance" within the meaning of subsection (a)(19) of 49 U.S.C. section
49 40102, and shall be recordable at the FAA aircraft registry pursuant to 14 CFR
50 49.17.
51 45-1107. RELEASE OR DISCHARGE OF LIEN. A lien under this chapter shall be
4
1 released and discharged by the lien claimant or the agent of the lien claimant
2 in accordance with the regulations of the federal aviation administration.
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
Moved by Higgins
Seconded by Tilman
IN THE HOUSE OF REPRESENTATIVES
HOUSE AMENDMENT TO H.B. NO. 634
1 AMENDMENTS TO SECTION 1
2 On page 2 of the printed bill, in line 2, following "owner." insert:
3 "Provided however, that the person, firm or corporation who is about to make,
4 alter or repair the aircraft or related equipment, in order to derive the ben-
5 efits of this section, must, before commencing such making, altering or
6 repairing, give notice of the intention to so make, alter or repair the air-
7 craft or related equipment, by registered mail, to any holder of a security
8 interest which is of record at the FAA, at least three (3) days before com-
9 mencing the making, altering or repairing, and if notice in writing within the
10 three (3) days is not given by the holder of a security interest notifying
11 such person, firm or corporation not to perform such services, then the mak-
12 ing, altering or repairing may proceed and the prior lien provided for herein
13 attaches to the aircraft or related equipment."; on page 3, in line 23, delete
14 "the starting of labor or services or the furnishing"; delete line 24 and
15 insert: "recording of the notice of lien under section 45-1103, Idaho Code.";
16 and in line 36, following "expenditure" insert: "by sending such notice to the
17 address of the holder of the security interest listed in the FAA record of
18 lien".
|||| LEGISLATURE OF THE STATE OF IDAHO ||||
Fifty-sixth Legislature Second Regular Session - 2002
IN THE HOUSE OF REPRESENTATIVES
HOUSE BILL NO. 634, As Amended
BY BUSINESS COMMITTEE
1 AN ACT
2 RELATING TO AIRCRAFT IMPROVEMENT LIENS; AMENDING TITLE 45, IDAHO CODE, BY THE
3 ADDITION OF A NEW CHAPTER 11, TITLE 45, IDAHO CODE, TO PROVIDE FOR SPECIAL
4 LIENS DEPENDENT ON POSSESSION, TO PROVIDE FOR STATUTORY LIENS FOLLOWING
5 SURRENDER OF POSSESSION, TO PROVIDE FOR NOTICES OF LIEN, TO PROVIDE FOR
6 RECORDING OF LIEN NOTICES, TO DEFINE OWNERS OR AUTHORIZED AGENTS OF
7 OWNERS, TO PROVIDE FOR THE PRIORITY OF LIENS, TO PROVIDE FOR THE ENFORCE-
8 MENT OF LIENS AND TO PROVIDE FOR THE RELEASE AND DISCHARGE OF LIENS.
9 Be It Enacted by the Legislature of the State of Idaho:
10 SECTION 1. That Title 45, Idaho Code, be, and the same is hereby amended
11 by the addition thereto of a NEW CHAPTER, to be known and designated as Chap-
12 ter 11, Title 45, Idaho Code, and to read as follows:
13 CHAPTER 11
14 AIRCRAFT IMPROVEMENT LIENS
15 45-1101. AIRCRAFT IMPROVEMENT LIEN -- SPECIAL LIEN DEPENDENT UPON POSSES-
16 SION. (1) Any person, firm, or corporation who expends labor, skill, or mate-
17 rials upon an aircraft, aircraft engines, propellers, appliances, spare parts,
18 or related equipment, at the request of its owner, reputed owner, authorized
19 agent of the owner, or lawful possessor of the aircraft, has a special lien,
20 dependent upon possession, on the aircraft for the just and reasonable charges
21 for the labor performed and material furnished up to the amount of the written
22 estimate or subsequent oral or written modifications thereto.
23 (2) Provided however, a person, firm, or corporation expending labor,
24 skill or materials pursuant to the provisions of subsection (1) of this sec-
25 tion shall not have a special lien on the aircraft unless the person, firm, or
26 corporation delivers a written estimate regarding the nature and cost of
27 repair work to the owner, reputed owner, authorized agent of the owner or law-
28 ful possessor of the aircraft prior to expending labor, skill or materials on
29 the aircraft.
30 (3) If not paid within two (2) months after the work is done, the person,
31 firm or corporation may proceed to sell the property at public auction after
32 first providing written notice of the impending sale to the owner, reputed
33 owner, authorized agent of the owner, or lawful possessor of the aircraft, as
34 well as any known secured parties or lienholders, by United States mail, cer-
35 tified, return receipt requested, or equivalent private courier service that
36 provides evidence of date of delivery of mail. The person, firm or corporation
37 shall give ten (10) days' public notice of the sale by advertising in some
38 newspaper published in the county in which the work was done; or, if there be
39 no newspaper published in the county, then by posting notices of the sale in
40 three (3) public places in the town where the work was done, for ten (10) days
41 previous to the sale. The proceeds of the sale must be applied to the dis-
42 charge of the lien and the cost of keeping and selling the property; the
2
1 remainder, if any, must be paid over to the other secured parties or lienhold-
2 ers, if any, and the owner. Provided however, that the person, firm or corpo-
3 ration who is about to make, alter or repair the aircraft or related equip-
4 ment, in order to derive the benefits of this section, must, before commencing
5 such making, altering or repairing, give notice of the intention to so make,
6 alter or repair the aircraft or related equipment, by registered mail, to any
7 holder of a security interest which is of record at the FAA, at least three
8 (3) days before commencing the making, altering or repairing, and if notice in
9 writing within the three (3) days is not given by the holder of a security
10 interest notifying such person, firm or corporation not to perform such ser-
11 vices, then the making, altering or repairing may proceed and the prior lien
12 provided for herein attaches to the aircraft or related equipment.
13 45-1102. SURRENDER OF POSSESSION -- STATUTORY LIEN. (1) Any person, firm,
14 or corporation who expends labor, skill, or materials upon an aircraft, air-
15 craft engines, propellers, appliances, or spare parts, at the request of its
16 owner, reputed owner, or authorized agent of the owner, or lawful possessor of
17 the aircraft, has a lien upon the aircraft, or related equipment, for the con-
18 tract price of the expenditure, or in the absence of a contract price, for the
19 reasonable value of the expenditure.
20 (2) The statutory lien created pursuant to this section:
21 (a) Is applicable to any civil aircraft engine, aircraft propeller, or
22 aircraft appliance which is capable of having the ownership, or an inter-
23 est in the ownership, affected by a conveyance, recorded at the federal
24 aviation administration (FAA) aircraft registry;
25 (b) Is not dependent upon possession by the repairperson of the property
26 which is subject to the lien;
27 (c) Is dependent upon the recordation of the lien at the FAA aircraft
28 registry in accordance with section 45-1103, Idaho Code;
29 (d) Must be created by written contract between the parties, and any sub-
30 sequent oral or written modifications thereto. The written contract must
31 be signed by the customer, and predate the commencement of work for which
32 the lien is applicable.
33 45-1103. NOTICE OF LIEN -- RECORDATION. The statutory lien created pursu-
34 ant to section 45-1102, Idaho Code:
35 (1) Is not valid unless and until it is recorded with the FAA aircraft
36 registry in the manner and in the form generally required for the "Recording
37 of Aircraft Titles and Security Documents" pursuant to 14 CFR 49.
38 (2) Is valid upon recordation by the FAA aircraft registry of a written
39 document entitled "NOTICE OF AIRCRAFT LIEN." This document shall:
40 (a) Be signed by the repairperson or by a duly authorized agent or attor-
41 ney of the repairperson; and
42 (b) Be verified by the person signing the notice of lien upon that
43 person's personal knowledge of the matters stated in the notice of lien,
44 and which shall affirmatively state: "I declare under penalty of perjury,
45 in accordance with the laws of the state of Idaho and of the laws of the
46 United States of America, that the matters stated herein are true and cor-
47 rect upon my information and belief."
48 (c) Contain the date and place of signing of the notice of lien.
49 (3) The notice of lien referred to in subsection (2) of this section
50 shall contain the following information:
51 (a) The United States registration number, make, model and serial number
52 of the aircraft subject to the lien;
53 (b) The name of the manufacturer, the model, and the serial number of all
3
1 applicable engines, propellers or appliances subject to the lien, to the
2 extent they are not otherwise identifiable merely by reference to the air-
3 craft registration number;
4 (c) The name, address and business telephone number of the repairperson
5 asserting the lien;
6 (d) The name, address and business telephone number of the registered
7 owner of the civil aircraft or other property subject to the lien;
8 (e) The name, address and business telephone number of the person con-
9 senting to the performance of the work giving rise to the lien;
10 (f) The amount of the lien, exclusive of prospective storage costs;
11 (g) A narrative statement describing the nature of the work accomplished;
12 (h) The affirmative statement that a copy of the notice of lien is con-
13 currently being sent by United States mail, certified, return receipt
14 requested, or equivalent private courier service that provides evidence of
15 date of delivery of mail, to both the registered owner and to the person
16 consenting to the work;
17 (i) The date of last services or materials provided.
18 (4) No notice of lien pursuant to subsection (2) of this section is valid
19 unless it is presented for recording at the FAA registry within one hundred
20 eighty (180) days of the completion of the work giving rise to the lien.
21 45-1104. PERSONS CONSIDERED OWNER OF AIRCRAFT OR RELATED EQUIPMENT, OR
22 AUTHORIZED AGENT OF OWNER. The following persons are considered the owner of
23 an aircraft or related equipment, or the authorized agent of the owner, for
24 the purposes of this chapter:
25 (1) A person in possession of the aircraft or related equipment under an
26 agreement to purchase it, whether title to the aircraft or related equipment
27 is in the possession of the person or the vendor;
28 (2) A person in lawful possession of the aircraft or related equipment.
29 45-1105. PRIORITY. A lien under section 45-1102, Idaho Code, when
30 recorded in accordance with section 45-1103, Idaho Code, is superior to and
31 preferred to:
32 (1) A lien, mortgage or encumbrance that attaches to the aircraft, or
33 related equipment, after recording of the notice of lien under section
34 45-1103, Idaho Code.
35 (2) A prior lien, mortgage or other encumbrance, when the person furnish-
36 ing the materials or performing the services did not have actual or construc-
37 tive notice of the prior lien, mortgage or encumbrance, or the prior lien,
38 mortgage or encumbrance was not recorded or filed in the manner provided by
39 law.
40 (3) A lien that attaches to the aircraft or equipment on the basis of a
41 security interest, if, prior to the expenditure of labor, skill or materials
42 upon the aircraft or equipment, the person planning to make the expenditure
43 gives notice of that intention by United States mail, certified, return
44 receipt requested, or equivalent private courier service that provides evi-
45 dence of date of delivery of mail, to any holder of a security interest of
46 record at the FAA prior to commencing such expenditure by sending such notice
47 to the address of the holder of the security interest listed in the FAA record
48 of lien, and the holder of the security interest does not respond within three
49 (3) days of receipt of notice noting its opposition to the making of such an
50 expenditure of labor, skill or materials.
51 45-1106. ENFORCEMENT OF LIEN. (1) A suit to enforce a lien described in
52 section 45-1102, Idaho Code, must be brought within twelve (12) months after
4
1 the lien is recorded.
2 (2) The practice and procedure to enforce a lien shall be governed by the
3 law applicable to the foreclosure of mechanics' and materialmen's liens pro-
4 vided however, that notice requirements shall also extend to secured parties
5 or lienholders of record with the federal aviation administration.
6 (3) Any judgment entered by the court shall be deemed to be a
7 "conveyance" within the meaning of subsection (a)(19) of 49 U.S.C. section
8 40102, and shall be recordable at the FAA aircraft registry pursuant to 14 CFR
9 49.17.
10 45-1107. RELEASE OR DISCHARGE OF LIEN. A lien under this chapter shall be
11 released and discharged by the lien claimant or the agent of the lien claimant
12 in accordance with the regulations of the federal aviation administration.
STATEMENT OF PURPOSE
RS 12053
This legislation will allow a person, firm, or corporation that
provides repair services to aircraft, to have a lien for services
without retaining possession of the aircraft. The bill also
outlines the filing and other requirements for a possessory lien
for services that is similar to Idaho’s Mechanic’s Lien already in
statute, but conforms it to the FAA requirements in the Code of
Federal Regulations.
FISCAL IMPACT
This legislation will have no fiscal impact.
Contact
Name: Rep. Kent A. Higgins
Phone: 332 1000
STATEMENT OF PURPOSE/FISCAL NOTE H 634