April 12, 2011 / Law Alert

Motor Carrier Hidden Liens: What Secured Lenders Need to Know

Secured lenders must prepare to conduct more due diligence than ever before when lending to motor carriers. As a result of the March 3, 2011 Sixth Circuit decision In re: Arctic Express Inc., owner-operators (independent drivers) may have enforceable “hidden” liens on certain assets of motor carriers that would require restitution, not only from the motor carriers but from the motor carriers’ secured lenders as well.