How to do a Lien Release?

TulsaWeather

TulsaWeather

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TulsaWeather
I was my little, local bank's first and only aircraft loan.

Now that the note is paid off, how do I get a lien release to FAA from them? They don't know (and since I've never paid off an aircraft loan, I don't know either-LOL)

Thanks
 
TulsaWeather said:
I was my little, local bank's first and only aircraft loan.

Now that the note is paid off, how do I get a lien release to FAA from them? They don't know (and since I've never paid off an aircraft loan, I don't know either-LOL)

Thanks
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Contact the bank and tell them to issue you a lien release. They should send it out free of charge, and then you would likely need to provide that to the title-issuing authority in your state (if applicable) so that a new title could be filed removing the lien holder from the title/record. You could just send a copy of the lien release to the FAA if the bank doesnt know the process, although I'm not sure why the FAA cares about title/lien issues aside from correcting the digital record on file.
 
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TulsaWeather said:
I was my little, local bank's first and only aircraft loan.

Now that the note is paid off, how do I get a lien release to FAA from them? They don't know (and since I've never paid off an aircraft loan, I don't know either-LOL)

Thanks
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You need to post a bit more often, James. Need your meteorology input, although we've been having a few weeks of severe clear weather in T-town, lol.
 
SoonerAviator said:
You need to post a bit more often, James. Need your meteorology input, although we've been having a few weeks of severe clear weather in T-town, lol.
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I'll try. Despite the CAVU weather, life is pretty busy! (I did squeeze in a quick c/c to T23 Tuesday for some amazing chicken fried steak at the Beehive Saloon).
 
TulsaWeather said:
I was my little, local bank's first and only aircraft loan.

Now that the note is paid off, how do I get a lien release to FAA from them? They don't know (and since I've never paid off an aircraft loan, I don't know either-LOL)

Thanks
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A bank that doesn't know how to do a lien release? That's scary.

if they recorded the lien with the FAA form "Notice of Recordation", the bottom of the form has the release. If not, tell them they pay bank counsel for all sorts of things ask them. If you are part of the AOPA Legal Service plan, any of us would be happy to send them a form.

:rolleyes:
 
SoonerAviator said:
Contact the bank and tell them to issue you a lien release. They should send it out free of charge, and then you would likely need to provide that to the title-issuing authority in your state so that a new title could be printed removing the lien holder from the title. After you have a clear title in-hand, you would just send it (and maybe a copy of the lien release) to the FAA if you so desire, although I'm not sure why the FAA cares about title/lien issues.
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Wait. Airplanes have titles?
 
Did the bank even register the lien with the FAA? I doubt that they even knew they could or should.
 
SoonerAviator said:
Not a title like with a car. The digital record filed with the FAA. Wouldn't surprise me if some states generate a title or registration document for tax purposes.
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Not saying they don't exist but do you know of even one? I know of several states which require aircraft to be registered with them but none which issue certificates of title. And those registrations are not ownership documents.
 
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Write them here: https://registry.faa.gov/aircraftemail/

While I found the registry overly picky, they are responsive when you contact them as to what the requirements are.

The next question is did the bank ever file the lien with the FAA to begin with?
 
Sigh. People make such easy things sound so complicated (complicated is when the bank no longer exists). This is the current form. It's been substantially the same since at least 1983 1976. The top is the part the FAA fills out sends the lender acknowledging the recording of the security agreement (assuming the bank in fact recorded it). The lender fills out the bottom and signs it when it's time to release it. The bank either sends it to the FAA (they should) or passes it on to the borrower to do so.

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PPC1052 said:
Is there a resource for how to do it if the bank no longer exists?
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I've seen the FDIC assist with this provided they were involved in the bank closure process. However, as I recall since the lien falls under state rules, each state has a process to pursue this issue.
 
PPC1052 said:
Is there a resource for how to do it if the bank no longer exists?
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The FDIC has a page where we can lookup information on both active and inactive banks. Within that, we can see its full history, including mergers, acquisitions, closures, and sales of assets.
https://banks.data.fdic.gov/bankfind-suite/

The current "owner" can be contacted for the release. Sometimes easier than others. I had a funky one several years ago. Interesting story - but only to banking people and lawyers.
 
midlifeflyer said:
The FDIC has a page where we can lookup information on both active and inactive banks. Within that, we can see its full history, including mergers, acquisitions, closures, and sales of assets.
https://banks.data.fdic.gov/bankfind-suite/

The current "owner" can be contacted for the release. Sometimes easier than others. I had a funky one several years ago. Interesting story - but only to banking people and lawyers.
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Thanks,

I have an old Indianapolis Morris Plan lien that I am trying to track down the successor to the original lien holder. This isn't my area of expertise. I can't find it on the FDIC web site.
 
PPC1052 said:
Thanks,

I have an old Indianapolis Morris Plan lien that I am trying to track down the successor to the original lien holder. This isn't my area of expertise. I can't find it on the FDIC web site.
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It's there. It was merged into First Financial Bank in February, 2021.

I lived on that site for 8 years.
 
midlifeflyer said:
It's there. It was merged into First Financial Bank in February, 2021.

I lived on that site for 8 years.
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Thanks. I found that one, but the lien holder was Indianapolis Morris Plan. There are a few different Morris Plan entities that were merged/acquired with different entities. I'm not sure that that is the correct entity. I need to research that.
 
PPC1052 said:
Thanks. I found that one, but the lien holder was Indianapolis Morris Plan. There are a few different Morris Plan entities that were merged/acquired with different entities. I'm not sure that that is the correct entity. I need to research that.
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At least it's the right state :D. The OCC site only shows one Morris Plan in Indiana. With that information, I would start with the listed successor.
 
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