HB493INTRODUCED Page 0 HB493 NW5U88T-1 By Representative Robbins RFD: Financial Services First Read: 30-Apr-24 1 2 3 4 5 NW5U88T-1 04/30/2024 SLU (L)bm 2024-1665 Page 1 First Read: 30-Apr-24 SYNOPSIS: Under existing law, a person who provides labor or materials to manufacture or repair vehicles or machines of any kind has a statutory mechanic's lien on the machine after possession of the machine has been relinquished to the person for whom the work was performed, and the mechanic's common law possessory lien is therefore relinquished. Under existing law, the statutory lien is subordinate to any Uniform Commercial Code security interests perfected prior to the time that the work was performed. This bill would specify that a person who stores, fuels, repairs, or performs maintenance work on an aircraft has a mechanic's lien on the aircraft, subordinate to certain security interests under the Uniform Commercial Code that were perfected before the storage, fuels, repairs, or maintenance work was provided. This bill would authorize the holder of a statutory mechanics lien on an aircraft to record the lien by filing with the Federal Aviation Administration Aircraft Registry pursuant to applicable federal requirements. This bill would further authorize the holder of the lien to record the lien on an aircraft that is not 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 HB493 INTRODUCED Page 2 the lien to record the lien on an aircraft that is not registered in any national jurisdiction or that is registered in a nation other than the United States by filing with the Alabama Secretary of State subject to payment of certain fees that the Secretary of State may require. A BILL TO BE ENTITLED AN ACT Relating to mechanic's lien on aircraft; to specify that a person who contributes certain materials, labor, or other services to an aircraft has a mechanic's lien on the aircraft; to provide that the lien shall be subordinate to certain previously perfected security interests; to authorize the holder of the lien to record the lien with the Federal Aviation Administration; and to authorize the holder of the lien to record the lien on certain aircraft with the Alabama Secretary of State. BE IT ENACTED BY THE LEGISLATURE OF ALABAMA: Section 1. (a) A person who stores, fuels, repairs, or performs maintenance work on an aircraft has a lien on the aircraft for either of the following: (1) The amount due under a contract for the storage, fuel, repairs, or maintenance work. (2) If no amount is specified by contract, the reasonable and usual compensation for the storage, fuel, 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 HB493 INTRODUCED Page 3 reasonable and usual compensation for the storage, fuel, repairs, or maintenance work. (b) This section applies to a contract for storage only if: (1) The contract is written; or (2) The contract is verbal and provides for a storage period of at least 30 days. (c) The lien shall be subordinate to any security interest in the aircraft under the Uniform Commercial Code, which security interest was perfected prior to the time the storage, fuel, repairs, or maintenance work was provided, unless the secured party holding the security interest authorized the holder of the lien to provide the storage, fuel, repairs, or maintenance work. (d) A holder of a lien under this section may record the lien on the aircraft by filing with the Federal Aviation Administration Aircraft Registry not later than the 180th day after the date of the completion of the contractual storage period or the performance of the last repair or maintenance a verified document in the form and manner required by applicable federal laws and regulations that states all of the following: (1) The name, address, and telephone number of the holder of the lien under this section. (2) The amount due for storage, fuel, repairs, or maintenance work. (3) A complete description of the aircraft. (4) The name and address of the owner of the aircraft and the number assigned the aircraft by the Federal Aviation 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 HB493 INTRODUCED Page 4 and the number assigned the aircraft by the Federal Aviation Administration, if known. (e) A holder of a lien under this section on an aircraft that is registered in a nation other than the United States or that is not registered in any national jurisdiction, may record the lien on the aircraft by filing with the Secretary of State not later than the 180th day after the date of the completion of the contractual storage period or the performance of the last repair, fueling, or maintenance an affidavit that states all of the following: (1) The name, address, and telephone number of the holder of the lien under this section. (2) The amount due for storage, repairs, fuel, or maintenance. (3) A complete description of the aircraft. (4) a. The name and last known address of the owner of the aircraft and the number assigned the aircraft by the applicable jurisdiction, if known. b. An inaccurate address stated under this subdivision does not invalidate the affidavit. (5) The Secretary of State shall maintain a record of information filed with the Secretary of State under this section and index the records in the name of the owner of the aircraft. (6) The Secretary of State may establish certain fees payable by the holder of the lien for filing the information with the Secretary of State under this section. Section 2. This act shall become effective on October 1, 2024. 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112