In a recent Indiana case, the Court found that a possessory lien for repairs made to a semi-truck took priority over the lender’s properly perfected security interest. In this case, a lessee rented a semi-truck. Under the lease agreement, the consideration lessee was obligated to pay was based on the price of the truck, plus the interest, divided by the total term in months to arrive at a monthly payment. At the conclusion of the term, the lessee had the option to buy the truck for a fraction of the total rental price.
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Posts Tagged ‘creditors’ rights’
Possessory Lien Can Trump Security Interest
Thursday, September 2nd, 2010Possessory Lien Can Trump Security Interest
Wednesday, September 23rd, 2009In a recent Indiana case, the Court found that a possessory lien for repairs made to a semi-truck took priority over the lender’s properly perfected security interest. In this case, a lessee rented a semi-truck. Under the lease agreement, the consideration lessee was obligated to pay was based on the price of the truck, plus the interest, divided by the total term in months to arrive at a monthly payment. At the conclusion of the term, the lessee had the option to buy the truck for a fraction of the total rental price. (more…)