Few things in the equipment industry generate as much discussion (or fear) as lien laws. When most people think about these laws, their thoughts are rarely good. There are so many horror stories about lien laws that some people refer to them as paper terrorism. However, when UCC filings are properly executed, they’re worth their weight in gold, especially to an equipment dealer.
The Western Equipment Dealers Association has done a lot of work to provide dealers with guidance and access to tools to help them make sure the equipment they take in for trade from customers is free and clear of security interests, that no creditor is going to claim otherwise. But there’s another twist in this process, which has led to an opinion from the association’s legal counsel and this involves equipment purchased by a dealer from another dealer.
Association CEO John Schmeiser explains in this edition of WEDA Connect.
Podcast by John Schmeiser
JOHN SCHMEISER is the CEO of the Western Equipment Dealers Association (WEDA). First established in Canada in 1927, WEDA represents over 2200 farm, construction, and outdoor power equipment dealers in both Canada and the U.S.