Authorization to Provide Information
Authorization-to-Provide-Information [Keywords: Authorization to Provide Information, Liens]
Problems with Blanket Liens
Have you ever been tripped up by a blanket lien? Members of the Iowa-Nebraska Equipment Dealers Association are increasingly confronting issues regarding security interests held by banks in equipment they either purchase outright or accept in trade on other equipment from customers. Samuel I. Kreamer, J.D., C.P.A. of Kreamer Law Firm has put together three forms he has prepared to help protect dealers from losses due to unreleased interests. Please read the following memo and download available forms for your use: [Blank Lien forms] It is suggested that DEALERS SHOULD ALSO DO A UCC SEARCH ON THE CUSTOMER’S NAME (AS WELL… Read More »
Getting Paid for Parts and Service
[Source: INEDA, 11.2016 | Keywords: Business Operations, Liens] Sometimes it is necessary to exercise your legal rights when a customer fails to pay for parts and service. This article will help you understand those rights under Iowa and Nebraska law, and how those rights are exercised. While the employee who actually provides the services and/or installs parts may be a “mechanic,” when the customer does not pay his/her bill the dealership acquires an “artisan’s lien” (NOT a “mechanic’s lien”) on the subject equipment. To be enforceable, an artisan’s lien must be “perfected.” In Iowa, an artisan’s lien is perfected by… Read More »
What You Need to Know Before You Buy Used Equipment or Accept Used Equipment in Trade
[Author: Samuel I. Kreamer, J.D., C.P.A., Kreamer Law Firm, P.C., 2016 | Keywords: Business, Operations, Liens] As we are all aware, banks (or other lenders) take a VERY dim view of customers who do not repay their loans. To increase the odds that their loan will get repaid, lenders routinely require borrowers to grant the lender the right to repossess and sell specific assets in satisfaction of their loan. This is alternately stated as: the borrower grants the lender a security interest (a “Lien”) in a specific asset (the “Collateral”). Sometimes borrowers try to sell (or use as trade-in) the bank’s… Read More »
How much would you pay for something you won’t own?
[Author: Samuel I. Kreamer, J.D., C.P.A., Kreamer Law Firm, P.C., 2016 | Keywords: Business, Operations, Liens] For some, the answer to this question is, “tens of thousands of dollars.” This is an increasingly common situation facing dealers. An item is taken by a dealer as a trade-in from a customer on a new purchase. After the trade-in item is sold, the dealer receives a demand letter or even a lawsuit from the customer’s bank. Sound familiar? The end result could be that not only did the dealer get too little for the equipment sold to the customer, but the dealer is now… Read More »