Capricious
Platinum Member
A bit of info on how ag dealers avoid buying/trading for, used tractors with outstanding liens.
Would also be applicable to the private individual purchasing a used tractor from a non-dealer.
http://www.naeda.com/files/ucc-summary.pdf
What is important to note is that the lien would be filed under the name of the current "owner." and it is necessary to get the name correct; i.e. a lien filed under the name "John Allen Doe" may not show up in a UCC-1 search under "John Doe." Likewise, a search under "John Smith Farms" may not show liens filed under the name "John Allen Smith Farms."
If there is a lien that the buyer does not discover, the buyer loses unless he can prove in court that the lien was filed under the
wrong name, and not that the buyer searched under the wrong name.
http://www.ccsb.com/Newsletters/2013_Summer_Capital_Newsletter/You Need to Sweat the Small Stuff.pdf
It is my understanding that the biggest problems do not arise with financing the purchase price of a specific piece of equipment, but rather with "blanket liens" arising from financing agricultural/construction activites, where the borrower signs financing papers providing for liens on all his existing equipment and possibly all future equipment. So, just because he said he paid cash for a tractor, that does not mean there is no lien against that tractor.
Something to think about before buying an expensive tractor.
Or, you can do as I did, and buy a cheap, abused tractor which I could afford to lose if a lien-holder knocked on my door some day.
Would also be applicable to the private individual purchasing a used tractor from a non-dealer.
http://www.naeda.com/files/ucc-summary.pdf
What is important to note is that the lien would be filed under the name of the current "owner." and it is necessary to get the name correct; i.e. a lien filed under the name "John Allen Doe" may not show up in a UCC-1 search under "John Doe." Likewise, a search under "John Smith Farms" may not show liens filed under the name "John Allen Smith Farms."
If there is a lien that the buyer does not discover, the buyer loses unless he can prove in court that the lien was filed under the
wrong name, and not that the buyer searched under the wrong name.
http://www.ccsb.com/Newsletters/2013_Summer_Capital_Newsletter/You Need to Sweat the Small Stuff.pdf
It is my understanding that the biggest problems do not arise with financing the purchase price of a specific piece of equipment, but rather with "blanket liens" arising from financing agricultural/construction activites, where the borrower signs financing papers providing for liens on all his existing equipment and possibly all future equipment. So, just because he said he paid cash for a tractor, that does not mean there is no lien against that tractor.
Something to think about before buying an expensive tractor.
Or, you can do as I did, and buy a cheap, abused tractor which I could afford to lose if a lien-holder knocked on my door some day.
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