Tips to File a Special Tools Lien

Being in the special tools industry can be hard since there are lots of unscrupulous people out there. You can make use of these tips so that you can easily file for the special tools lien.

All you need is a digital camera and some etching material. File the UCC document at the right agency and you can ensure payment of your property.

The Importance

If your business is classified under the MTDM (machine tool, die, or mold) shop or a tooling manufacturer in the US, you should be aware of your state’s protections for the special tools. Owners of MTDM shops should file special tools lien so that they won’t end up like other companies out there who are hard hit. You can use the tips in this article to file for the lien. All you need is a digital camera, marking or etching tool, and the Uniform Commercial Code (UCC) document.

Affix your company’s name and the exact permanent address in a rough finish or casting using a marking or etching tool. Get your digital camera and take pictures of your products together with the information you’ve just etched. This is necessary since lots of unsavory people and companies are out there. Choose an inconspicuous location to etch such information. The next step is to complete the UCC document. You should do this at the UCC office found in your state. This document will state that you’re the original builder of the tool and you’re placing a claim against such special tool, mold, die, fixture, gauge, etc. until it is paid (the amount is already indicated in the PO or purchase order). You will also need to provide the name of the companies (including yours) and the PO amount.

Lawyer Needed

Since there are legal matters concerned, you may need to consult your lawyer about it. Have your lawyer review the tooling lien that you’re planning to file to ensure accuracy and compliance. You need to be aware that some companies will try to pop, buff off, or grind the information you’ve etched, you may need to affix the etchings multiple times in different inconspicuous locations. Following the legal aspects of filing special tools lien is very important. If you commit a mistake, your lien can be denied. It can cost you thousands to millions of dollars so do try to consult a reputable lawyer.

Here’s one trick – etch the company info on a noticeable spot (easy for other people or companies to see). After that, you will not etch your markings on several inconspicuous locations. Take pictures of these markings using your camera. You can use this as evidence. Filing a special tools lien is necessary if your business is considered as MTDM shops. Follow these tips and you can file the lien in no time. Find a reputable lawyer to help you out with the legal matters. The extra cost will save you more money in the long run.


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