What You Should Know About Aircraft Liens
Aircraft Finance attorney Juan Carlos Ferrer was mentioned in an AvBuyer Magazine article about the complexities of aircraft liens and their implications for buyers and owners. The article highlights the importance of understanding various types of liens, with a focus on those related to financing. Mr. Ferrer explained that consensual liens, such as aircraft mortgages, result from agreements between lenders and owners, while non-consensual liens, such as mechanics' liens, arise by operation of law. The article advises aircraft buyers to conduct thorough research, including Federal Aviation Administration (FAA) and International Registry records, and recommends retaining legal counsel to ensure a clear title and address potential issues. Mr. Ferrer highlighted the complexities of aircraft liens and described the enforcement process.
“In order to enforce a loan, the lender would initiate foreclosure proceedings to enable it to repossess and sell the aircraft and use the sales proceeds to repay the loan,” he said.