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Aircraft Title, Liens, and the FAA Registry in Forced Sales

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Aircraft Title, Liens, and the FAA Registry in Forced Sales

Asset reference page. Legal information, not legal advice. Last verified: 2026-10-16.

Overview

A U.S. aircraft has no state certificate of title. Its ownership and encumbrance record is the FAA Aircraft Registry file kept under 49 U.S.C. §§ 44101–44113 and 14 CFR Parts 47 and 49 (faa-aircraft-registry). Three rules frame every forced sale of an aircraft:

  1. Recording validates; state law ranks. An instrument affecting title that is not filed with the Registry “is valid only against” its maker, the maker’s heirs and devisees, and “a person having actual notice” (49 U.S.C. § 44108(a)); once recorded it is “valid from the date of filing against all persons, without other recordation” (§ 44108(b)). The Supreme Court held that state laws letting “undocumented or unrecorded transfers of interests in aircraft … affect innocent third parties are pre-empted,” while agreeing that priority is otherwise “determined by reference to state law” — “recordation itself merely validates; it does not grant priority” (philko-aviation-v-shacket-1983, 462 U.S. 406 (1983)).
  2. Validity of the instrument follows the law of the place of delivery “regardless of the place at which the subject … is located” (49 U.S.C. § 44108(c)(1); 14 CFR § 49.17(c)), subject to the Geneva and Cape Town conventions (§ 44108(c)(2)).
  3. For larger aircraft, a second registry also matters. Airframes, helicopters and engines that meet the Cape Town Aircraft Protocol’s size thresholds carry “international interests” whose priority is set by registration at the International Registry (Convention art. 29), reached for U.S. aircraft through the FAA as Entry Point (49 U.S.C. § 44107(e)). See cape-town-convention-aircraft.

The registration certificate itself is “not evidence of ownership of an aircraft in a proceeding in which ownership is or may be in issue” (49 U.S.C. § 44103(c)(2)); the recorded conveyances are what a forced-sale buyer and a court look to.

The active FAA Certificate of Repossession catalogue entry links AC Form 8050-4, edition 09/24, OMB expiration February 28, 2029; the complete two-page form was retrieved 2026-10-17. Do not substitute an older same-edition PDF with an expired OMB date. This repossession form is not the universal judicial/lien-sale packet, and registration is not an adjudication of ownership (14 CFR § 47.5(c)).

The catalogue-linked full AC8050-1 application actually prints 04/24, despite08-2026in the filename. The full AC8050-2 bill of sale prints 12/24; the retrieved forms’ OMB expiry is February28,2029. Catalogue filenames are not edition dates. Indiana’s recorded-aircraft and abandoned-airport statutory routes require judicial process; federal acceptance of a sale bill/court decision does not decide Indiana lien ranking. See indiana for the official 2026 statutory text and remaining priority work.

What is recordable — and what is not

Recordable at the FAA (14 CFR §§ 49.31, 49.41, 49.51)Not recordable at the FAA
Bills of sale, conditional sale contracts and assignments, mortgages and assignments, leases, equipment trusts, “notice of tax lien or of other lien,” “other instrument affecting title to, or any interest in, aircraft,” and releases (§ 49.31)Notice of Federal tax lien — “not recordable under this part, since it is required to be filed elsewhere by the Internal Revenue Code” (§ 49.17(a)(2))
Security instruments, leases and liens on a “specifically identified aircraft engine of 550 or more rated takeoff horsepower” or propeller of 750 or more shaft horsepower (§ 49.41; 49 U.S.C. § 44107(a)(2))Promissory notes, financing statements and disclosure statements — “not appropriate documents to reflect the agreement of the parties, and are not recordable” (AC 8050-93, item 1)
Air-carrier engines, propellers, appliances and spare parts at designated locations (§ 49.51)—
Salvage / extraordinary-expense charge claims for operations terminated in a Geneva Convention country, within three months (§ 49.37)—

A recordable conveyance must describe the aircraft by make, model, manufacturer’s serial number and U.S. registration number (§ 49.33(b)); a security agreement must be signed by the debtor, who generally must be the registered owner or file for registration at the same time (§ 49.17(d)(1)). No acknowledgment is required for FAA recording, but “the law of the place of delivery” may require one for validity (§ 49.13(c)). A conveyance is filed “upon the date and at the time it is received” (§ 49.19).

UCC filings do not perfect a security interest in a U.S.-registered aircraft. UCC § 9-311(a)(1) provides that filing a financing statement “is not necessary or effective to perfect a security interest in property subject to … a statute, regulation, or treaty of the United States whose requirements for a security interest’s obtaining priority over the rights of a lien creditor … preempt Section 9-310(a),” and compliance with that federal regime “is equivalent to the filing of a financing statement” (§ 9-311(b)) (official text, Cornell LII, retrieved 2026-10-16). Whether a particular state’s enacted § 9-311 matches the official text is a per-state check — needs_verification for any specific state.

Liens that can encumber an aircraft — where each is found

InterestWhere it appearsNotes
Purchase-money and other security agreements, aircraft mortgages, leases, conditional salesFAA record (Part 49 Subpart C)Valid against third parties from filing (49 U.S.C. § 44108(b))
International interests (security, title-reservation, lease) on Cape Town “aircraft objects”International Registry (priority search) and the underlying FAA filingConvention art. 29(1): “A registered interest has priority over any other interest subsequently registered and over an unregistered interest”
Engine-specific liens (≥550 hp)FAA record (Subpart D) indexed to the engine; International Registry for Cape Town enginesProtocol art. XIV(3): ownership of or another interest in an engine “shall not be affected by its installation on or removal from an aircraft”
Mechanic’s, repairman’s, fuel, storage, hangar-keeper liensPossession by the lienor; and/or a lien notice filed at the FAA (e.g., Tex. Prop. Code § 70.303; R.I. Gen. Laws § 34-47-3) or at a county office (Fla. Stat. § 329.51; A.R.S. § 33-1022(C))See aircraft-mechanics-liens-and-non-judicial-sales
Federal tax lien (26 U.S.C. § 6321)Not at the FAA. For personal property the notice is filed “in one office within the State … as designated by the laws of such State, in which the property subject to the lien is situated,” and personal property is deemed situated “at the residence of the taxpayer at the time the notice of lien is filed” (26 U.S.C. § 6323(f)(1)(A)(ii), (f)(2)(B)); a corporation’s or partnership’s residence is “the place at which the principal executive office of the business is located”The IRS lien is not valid against a purchaser, holder of a security interest, mechanic’s lienor or judgment lien creditor until notice is filed (§ 6323(a)); a repair lienor “continuously in possession” takes ahead of even a filed federal tax lien (§ 6323(b)(5))
FAA civil-penalty lienArises by statute when the aircraft “is involved in” certain violations by its owner or commander; the aircraft “may be seized summarily,” with the Attorney General to “bring a civil action in rem to enforce the lien” (49 U.S.C. § 46304(a)–(b))Recording requirement not stated in the retrieved text — needs_verification
Forfeiture claims (drug, customs, registration-violation)No recorded notice before seizure; 21 U.S.C. § 881(a)(4) reaches “All conveyances, including aircraft”; 49 U.S.C. § 46306(d)See channel table below
State/local personal-property tax liens on aircraftState lawNot surveyed — needs_verification per state

How each forced-sale channel conveys title — and what survives

ChannelLegal source of the saleEvidence the FAA acceptsWhat the sale dischargesWhat can survive
Execution (sheriff/marshal) levy and sale on a money judgmentState execution law (see sheriff-sale)Bill of sale “signed by the sheriff, auctioneer, or other authorized person who conducted the sale, and stating that the sale was made under applicable local law” (14 CFR § 47.11(c))Judgment debtor’s interest; junior liens to the extent state execution law so providesSenior recorded security interests and leases; registered international interests (Aircraft Protocol art. XIV(2), which replaces Convention art. 29(3) for aircraft objects); possessory liens with priority; unfiled federal tax lien issues — state-law specific, needs_verification per state
Judicial foreclosure of an aircraft security interestState foreclosure/replevin law; secured party may proceed “pursuant to judicial process” (UCC § 9-609(b)(1))Form 8050-4 or equivalent + security agreement (if not recorded) + sheriff/authorized-person bill of sale (§ 47.11(b)); FAA guidance adds “a certified true copy of the court order of foreclosure” (AC 8050-94, item 13)Interests of parties joined and bound by the decreeInterests of non-parties; senior interests; Cape Town registered interests not discharged
Court determination of title (quiet title, replevin, declaratory judgment)Court decree”Certified copy of the decision of the court” (§ 47.11(d)); “aircraft must be specifically described in the order and the owner of record must be a party” (AC 8050-94, item 16)As decreedInterests of non-parties
UCC Article 9 non-judicial repossession and dispositionUCC §§ 9-609 (repossession “without judicial process, if it proceeds without breach of the peace”), 9-610 (commercially reasonable public or private disposition), 9-611 (notice), 9-617 (effect)Form 8050-4 + security agreement + bill of sale from the person who conducted the sale (§ 47.11(b))“Transfers to a transferee for value all of the debtor’s rights,” “discharges the security interest under which the disposition is made,” and “discharges any subordinate security interest or other subordinate lien” (§ 9-617(a)); good-faith transferee takes free “even if the secured party fails to comply” (§ 9-617(b))Senior security interests and liens; any interest not subordinate; registered international interests ranking ahead (Aircraft Protocol art. XIV(2)); priority possessory liens (UCC § 9-333(b))
Mechanic’s / storage / airport-charge lien saleState lien statute (e.g., Tex. Prop. Code § 70.305; A.R.S. § 33-1023; RCW 14.08.122(4))Bill of sale from the person who conducted the sale (§ 47.11(c)); lienholder supplies “the citation of the law under which sale was conducted, a statement that it was conducted in accordance with the law, and documentary evidence of compliance” (AC 8050-94, item 15)Statute-specificPrior recorded liens where the statute subordinates the lien (A.R.S. § 33-1022(B); R.I. Gen. Laws § 34-47-4); see aircraft-mechanics-liens-and-non-judicial-sales
Bankruptcy § 363 sale11 U.S.C. § 363(b), (f)Court sale order and trustee’s/debtor-in-possession’s bill of sale; “certified true copy of the court order appointing the trustee” to show authority (AC 8050-94, item 38); court order under § 47.11(d)Interests stripped under § 363(f) (“free and clear of any interest … only if” one of five conditions); finality for good-faith buyer absent a stay (§ 363(m))Interests the order does not strip; see bankruptcy-363-sales
Airline debtor — § 111011 U.S.C. § 1110Then a UCC/contract repossession and sale (above)—Secured party’s/lessor’s right to repossess “is not limited or otherwise affected by any other provision of this title or by any power of the court” unless, within 60 days after the order for relief, the trustee agrees to perform and cures defaults (§ 1110(a)(1)–(2)); applies to a debtor holding an air-carrier operating certificate for aircraft carrying “10 or more individuals or 6,000 pounds or more of cargo” (§ 1110(a)(3)(A)(i))
IRS levy sale26 U.S.C. §§ 6335, 6339Certificate of sale (evidentiary weight under § 6339(a)); FAA acceptance not described in retrieved guidance — needs_verificationCertificate transfers “all right, title, and interest of the party delinquent” (§ 6339(a)(2)) and discharges “all liens, encumbrances, and titles over which the lien of the United States … had priority” (§ 6339(c))Interests senior to the federal tax lien (e.g., a security interest recorded at the FAA before the IRS notice was filed — § 6323(a)); possessory repair liens protected by § 6323(b)(5)
Administrative customs/drug forfeiture sale19 U.S.C. §§ 1607, 1609; 21 U.S.C. § 881; 49 U.S.C. § 46306(d)Not described in retrieved FAA guidance — needs_verificationOn an administrative declaration of forfeiture, “Title shall be deemed to vest in the United States free and clear of any liens or encumbrances (except for first preferred ship mortgages …)” (19 U.S.C. § 1609(b))Innocent-owner interests are protected in civil forfeiture (18 U.S.C. § 983(d)(1)); lienholder remedies (remission/mitigation) not retrieved — needs_verification
Abandoned-aircraft disposition by an airportState law (e.g., Tex. Transp. Code § 22.901 — court declares abandonment and gives title to the local government; RCW 14.08.122(4) — airport-operator public sale)Court order (§ 47.11(d)) or sale bill of sale (§ 47.11(c))Statute-specificRecorded liens; RCW 14.08.122(4)(d) sends surplus to the state Department of Revenue to be held “for the owner or owners and lienholders”

Sources for the table: statutes and regulations cited inline, retrieved 2026-10-16 (URLs in Sources).

The Cape Town overlay in one paragraph

For a Cape Town “aircraft object” — an airframe type-certified for at least eight persons including crew or more than 2,750 kg of goods; a helicopter for at least five persons or more than 450 kg; a jet engine of at least 1,750 lb thrust or a turbine/piston engine of at least 550 rated take-off shaft horsepower (Aircraft Protocol art. I(2)(b), (e), (l)) — a buyer “acquires its interest in that object subject to an interest registered at the time of its acquisition” (Protocol art. XIV(2)), and a buyer “under a registered sale” takes free “from an unregistered interest, even if the buyer has actual knowledge of the unregistered interest” (Protocol art. XIV(1)). For aircraft objects these replace the Convention’s general buyer rule in art. 29(3) (Protocol art. III). The U.S. declared under Convention art. 39 that non-consensual rights that have priority under U.S. law keep that priority over registered international interests, and preserved the right of public-service providers to “arrest or detain an aircraft object … for payment of amounts owed” for services. A forced-sale buyer of a Cape Town object therefore checks both registries. Detail: cape-town-convention-aircraft.

Surplus and deficiency

  • UCC disposition. Application of disposition proceeds and the debtor’s surplus/deficiency position are governed by UCC § 9-615, whose text was not retrieved this session — needs_verification.
  • Cape Town chargee. Excess proceeds go to “holders of subsequently ranking interests which have been registered or of which the chargee has been given notice, in order of priority,” and the balance to the chargor (Convention art. 8(6)).
  • Lien sales. Texas: “The lienholder shall pay any excess proceeds to the person entitled to them” (Tex. Prop. Code § 70.305). Arizona: balance “paid to the person entitled thereto,” or, if unknown, to the Department of Revenue (A.R.S. § 33-1023(A), (C)). Washington airport sales: balance deposited with the Department of Revenue in trust for one year; if liens or multiple owners appear, interpleaded into court (RCW 14.08.122(4)(d)). Arizona’s actual 46-8503 R07/25 checkbox names the State Treasurer instead of § 33-1023(C)‘s Department of Revenue; that packet/statute discrepancy requires agency resolution, not silently rewriting the statutory recipient.
  • IRS levy. Surplus distribution cross-referenced to 26 U.S.C. § 6342(b) (§ 6339(d)); § 6342 text not retrieved.

▸ For Buyers / Operators. The questions that decide value are: which interests are senior to the one being enforced (they survive a UCC or lien sale — UCC § 9-617(a)(3) discharges only subordinate interests); whether the aircraft is a Cape Town object with registered international interests; whether a federal tax lien is on file in the owner’s home-state filing office (it will not be in the FAA file — 14 CFR § 49.17(a)(2)); whether a possessory mechanic’s lienor is still holding the aircraft; and whether the seller can deliver the exact § 47.11 evidence the Registry requires. Underwriting steps: buying-an-aircraft-at-a-forced-sale.

▸ For Owners / Debtors. The governing documents are the security agreement, the lien statute, and the notice provisions (UCC § 9-611; Tex. Prop. Code § 70.304; RCW 14.08.122(1)); surplus rights are summarized above. Bankruptcy can stay a pending non-judicial sale except where § 1110 applies to airline equipment (bankruptcy-automatic-stay-federal).

Wisconsin — a released-possession filing clock is not federal discharge

Under Wis. Stat. § 779.413(3), the released-possession notice/filing deadline runs 180 days after furnishing the covered services or supplies, not after surrendering possession. Notice to the owner and recorded holders, FAA filing for recordable aircraft, and the statutory alternative for foreign/nonrecordable aircraft are separate requirements. State priority language does not itself establish FAA recordation, federal validity or discharge of another recorded interest. See wisconsin and aircraft-mechanics-liens-and-non-judicial-sales.

South Carolina — FAA paperwork is not itself the casual-excise event

RR22-6, question2 states that issuance of federal ownership/documentation paperwork does not itself incur the state’s casual excise tax. This does not exempt an otherwise taxable aircraft retail/use purchase; its applicable maximum-tax rules remain separate. Likewise the county §29-15-100filing, its incorporated Common Pleas enforcement route and federal recordability/priority are separate questions. See south-carolina for the actual tax and filing sources; FAA registration is not a state all-liens-cleared certificate.

Washington — Holiday’s filing holding is not a universal rule

in-re-holiday-airlines-wa-m12-1980 upheld the Washington repair lien in its circumstances, treating FAA filing as sufficient despite the state place-of-filing provision. Surrendered possession and a propeller reinstalled in the aircraft did not defeat that particular lien. This does not decide that an airport auction strips every senior recorded lender.

The Florida Creston Aviation opinion applied a different state’s validity requirement and did not treat federal recording as eliminating its county filing. It is not a Ninth Circuit overruling. State creation/validity, recordability, priority and the sale’s interest conveyed remain distinct; see washington and the bounded case treatment, not an all-state rule derived from a single1980holding.

Needs verification

  • Per-state rules on which liens an execution sale of personal property discharges, and whether a sheriff’s sale of an aircraft conveys free of junior FAA-recorded liens.
  • Whether the FAA will update the aircraft record to reflect discharge of junior recorded liens (UCC § 9-617(a)(3)) without signed releases or a court order.
  • UCC § 9-615 (application of proceeds) and § 9-625 (remedies) — text not retrieved this session.
  • How the FAA Registry treats an IRS certificate of sale (26 U.S.C. § 6339) or a forfeiture sale bill of sale as evidence of ownership.
  • Lienholder remission/mitigation procedure in administrative forfeiture (19 U.S.C. § 1618; 28 CFR Part 9) — not retrieved.
  • Whether the FAA civil-penalty lien (49 U.S.C. § 46304) must be recorded to bind a purchaser.

aircraft, faa-aircraft-registry, cape-town-convention-aircraft, aircraft-mechanics-liens-and-non-judicial-sales, buying-an-aircraft-at-a-forced-sale, philko-aviation-v-shacket-1983, federal-tax-liens, bankruptcy-363-sales, sheriff-sale, power-of-sale, strict-foreclosure, good-faith-purchaser

Sources

Disclaimer. This page is legal information, not legal advice. It is a general summary that may be incomplete or out of date; law changes and its application is fact-specific and varies by state. Nothing here creates an attorney-client relationship. Verify every statute, regulation and holding against the current primary source and consult a licensed attorney before acting.

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