§261-75 Disposal of aircraft by persons in aircraft repair business. (a) When any person abandons an aircraft upon the premises of an aircraft repair business, the owner of the business or the authorized representative of the owner may sell or dispose of the aircraft in accordance with this section.

(b) An aircraft shall be deemed to be abandoned upon satisfaction of all the following conditions:

(1) The service requested or required by a person whose aircraft is towed or brought to an aircraft repair business, such as towing and rendering estimates of the cost of repairs, has been performed; and

(2) No authorization is given to perform any further service respecting the aircraft but the aircraft is left on the repair business premises; and

(3) The owner of the repair business or the owner's authorized representative has given notice by registered or certified mail:

(A) To the registered owner of the aircraft at the address on record at the aircraft repair business and the address on record in the Federal Aviation Administration, and

(B) To any person with a recorded interest in the aircraft, stating that if the aircraft is not repossessed within thirty days after the mailing of the notice, it will be sold or disposed of. The notice also shall contain a description of the aircraft and its location. The notice need not be sent to any purported owner or any person with an unrecorded interest in the aircraft whose name or address is not known and cannot be determined; and

(4) The aircraft is not repossessed within the thirty-day period specified in paragraph (3).

(c) When an aircraft is abandoned, the owner of the aircraft repair business, or the authorized representative of the owner of the repair business, after one public advertisement in a newspaper of general circulation in the State, may negotiate the sale of the aircraft or dispose of it; provided that the aircraft shall not be sold or disposed of less than five days after the publication of the advertisement.

(d) The authorized seller of the aircraft shall be entitled to the proceeds of the sale to the extent that compensation is due the seller for services rendered in respect of the aircraft, including reasonable and customary charges for towing, handling, storage, and the cost of the notices and advertising required by this section. A lien holder shall receive priority of payment from the balance to the extent of the lien holder's lien. Any remaining balance shall be forwarded to the registered owner of the aircraft, if the owner can be found. If the owner cannot be found, the balance shall be deposited with the director of finance of the State and shall be paid out to the registered owner of the aircraft, if a proper claim is filed therefor within one year from the execution of the sale agreement. If no claim is made within the year allowed, the money shall become a state realization.

(e) The transfer of title and interest by sale under this section is a transfer by operation of law and a bill of sale executed by the authorized seller shall be sufficient to authorize the transfer of title or interest. [L 1981, c 25, pt of §1; gen ch 1985]