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MGA for Federally Authorized Surety Companies — Aviation Practice

The aircraft lien release bond. Clears the FAA Registry.

A mechanic, repair station, or service provider has recorded a lien against your aircraft on the FAA Aircraft Registry under 49 U.S.C. §44107 — clouding title, preventing sale, blocking financing, and grounding the aircraft commercially. The aircraft lien release bond runs to the FAA and clears the lien from the Registry by substituting alternate security for the lien itself. We write FAA aircraft lien release bonds as a specialized sub-practice with same-day issuance to the FAA Aircraft Registration Branch in Oklahoma City.

Bond Penalty
1.5× – 2× lien amountFAA-required formula
Authority
49 U.S.C. §44107Federal aircraft title law
Filing Office
FAA Aircraft RegistryOklahoma City
Turnaround
Same-day issuance

What an aircraft lien release bond actually does.

Aircraft are unique among real-world chattels: they are titled and encumbered under a federal recording system, not state-by-state. The FAA Aircraft Registry in Oklahoma City — operated by the FAA Civil Aviation Registry — records every aircraft in the U.S. fleet, along with all liens and security interests recorded against each tail number. A mechanic's lien against an aircraft, perfected by recording with the Registry, follows the aircraft anywhere in the world. Selling, financing, exporting, or re-registering the aircraft is impossible until the lien is released or paid.

The lien release bond is the immediate statutory remedy. Under 49 U.S.C. §44107 and the implementing FAA regulations at 14 C.F.R. Part 49, the aircraft owner can file a bond with the FAA Aircraft Registry that substitutes alternate security for the lien. Once recorded by the Registry, the lien is released from the aircraft title. The lien claimant's recourse runs against the bond rather than the aircraft.

The mechanics differ from state-court mechanic's lien practice in three important ways. First, the filing is federal, not state — every aircraft lien release bond goes to one location, the FAA Aircraft Registration Branch in Oklahoma City. Second, the bond form is FAA-specified — the Registry has form requirements that differ from typical state lien release bond forms, and a non-conforming bond will be rejected for filing. Third, the bond multiplier is typically higher than state lien release practice — 1.5× to 2× the lien amount is standard, reflecting the high value of aircraft and the difficulty of executing on a mobile asset.

This is a specialized practice. We have written aircraft lien release bonds for commercial airliners, business jets, helicopters, agricultural aircraft, light sport aircraft, and experimental amateur-built aircraft. The same bond framework applies across the categories; the underwriting differs based on aircraft value and the principal's posture.

The rules we underwrite to.

Federal aircraft title law preempts state law for aircraft titled in the United States. The Federal Aviation Act, codified at 49 U.S.C. §44101 et seq., establishes the FAA Aircraft Registry as the exclusive system for recording aircraft ownership, liens, and security interests. Section 44107 specifies the recording requirements; the implementing regulations at 14 C.F.R. Part 49 contain the procedural detail.

Section 44108 makes recorded conveyances and liens effective against third parties only when they are recorded with the Registry. This is what makes the Registry filing dispositive: an unrecorded lien is unenforceable against bona fide purchasers and lienholders without notice. An unreleased recorded lien blocks the same dispositions.

For aircraft titled under Cape Town Convention registration (international aircraft financing), additional layers apply. The Cape Town International Registry, operated by Aviareto in Dublin, records international interests under the Convention. Cape Town interests interact with FAA Registry filings in nuanced ways; our underwriters address Cape Town-registered aircraft as a sub-specialty.

Controlling Authorities
49 U.S.C. §44107
49 U.S.C. §44107 — Federal recording of aircraft conveyances, liens, and security interests
49 U.S.C. §44108
49 U.S.C. §44108 — Validity of recorded conveyances against third parties
14 C.F.R. Part 49
14 C.F.R. Part 49 — FAA recording procedures, bond filing requirements
Cape Town Convention
Convention on International Interests in Mobile Equipment — international aircraft title framework
FAA Aircraft Registry
FAA Aircraft Registration Branch, Oklahoma City — filing office for all aircraft lien releases

How an aircraft lien release bond gets issued.

Aircraft lien release bonds are written on standard terms for aircraft owners with conventional financial position, but the documentation requirements are more involved than typical lien release work. Five items start the file: the recorded FAA lien (with the Registry's recording stamp and document number), the aircraft's registration certificate (Form AC 8050-3) showing the current tail number and registered owner, an aircraft valuation from a recognized source (typically Aircraft Bluebook or a current independent appraisal), a statement of the underlying dispute with the lien claimant, and a financial statement for the principal.

For aircraft over $1 million in value — typical of business jets, turboprops, and commercial aircraft — additional documentation is required: hull and aviation liability insurance certificates, maintenance log summaries showing airworthiness status, and confirmation that the aircraft is not subject to a pending bill of sale or international registration change. Bonds in the eight-figure range are routinely written for commercial airliners and heavy business jets.

The bond form is manuscripted to FAA requirements by our underwriters. The Registry has form-acceptance criteria that differ from state mechanic's lien release practice: specific recitals must appear, the surety's certificate of authority must be referenced in a particular way, and the Power of Attorney must be in a form the Registry will accept for recording. A bond drafted to typical state-court requirements will be rejected — we draft every aircraft bond to FAA Part 49 specifications.

Filing is with the FAA Aircraft Registration Branch in Oklahoma City. The Registry accepts hard-copy filings by mail or courier and is increasingly accepting electronic submissions through the AC Form 8050 series. For time-sensitive matters — aircraft scheduled for delivery, financing on a closing deadline, repossession proceedings — we coordinate directly with the Registry's recording staff to expedite the filing.

Aircraft lien release questions.

Why is aircraft lien release a federal practice rather than state?
Because aircraft are titled and encumbered under a federal recording system. 49 U.S.C. §44107 preempts state recording for aircraft titled in the U.S. The FAA Aircraft Registry in Oklahoma City is the exclusive forum for recording — and releasing — liens against aircraft. State court mechanic's lien procedures do not apply.
What's the bond multiplier?
Typically 1.5× to 2× the lien amount, depending on the underlying dispute and the aircraft's value. The FAA does not set a fixed multiplier by regulation but reviews each bond filing for sufficiency under Part 49. Higher multipliers are required for aircraft in active commercial use, where lien claimant exposure may include lost revenue beyond the bare lien amount.
Can a foreign-registered aircraft use this bond?
Only if the aircraft is on the FAA U.S. Registry. Aircraft titled in foreign registries (N-numbers are U.S.; G-numbers are U.K., D-numbers are Germany, etc.) use their home jurisdiction's lien release mechanism. We can advise on cross-border situations but the FAA bond is U.S.-registry-only.
How long does FAA recording of the bond take?
After the bond is filed with the Registry, recording typically takes 5-10 business days under standard FAA processing. Expedited processing is available for an additional FAA fee. Our underwriters can issue the bond same-day; the Registry recording timeline is outside our control but we coordinate with the Registry to expedite where possible.
Does the bond affect the aircraft's airworthiness?
No. The bond addresses title only; it does not affect the airworthiness certification of the aircraft. An aircraft with a recorded lien is still airworthy if its inspections, maintenance, and certifications are current. The lien affects only sale, financing, export, and re-registration.
What if the lien is also recorded internationally under Cape Town?
Cape Town-registered international interests must be released through the Aviareto International Registry in Dublin in addition to the FAA Registry release. We coordinate on dual-track releases for Cape Town aircraft, including drafting bond instruments that satisfy both registries' requirements where possible.
Can the bond cover liens from multiple repair stations on the same aircraft?
Generally yes, where each lien is identified and the bond aggregate covers the combined penal sum (1.5× to 2× total liens). The Registry processes multi-lien releases routinely. We can draft a single bond covering multiple recorded liens at issuance.

Further reading on the Surety One blog

↗ suretyone.com/blog

Lien on your aircraft?

Send the recorded FAA lien, the aircraft registration, and a current valuation. We write to FAA Part 49 specifications and file directly with the Aircraft Registry in Oklahoma City.