A. The registration fee and any penalties that have accrued under the Aircraft Registration Act constitute a lien on the aircraft from the date the registration fee was due. The division shall notify the registered owner of any aircraft required to be registered under that act by mailing a notice of intent to file a lien on any aircraft subject to a lien for nonpayment of aircraft registration fees. The registered owner shall have thirty days from the date of the mailing of such notice to pay all outstanding fees, interest and penalties. The division may thereafter perfect the lien by filing a notice of lien in the office of the secretary of state and the federal aviation administration aircraft records center. The notice of lien shall be on a form prepared by the division and shall indicate the amount of the registration fee that was due, the date the fee was due and the fact that penalties will accrue monthly from that date. The lien shall have priority over any other lien or encumbrance perfected subsequent to the date the notice of lien was filed, except for liens for state taxes having a priority established by law. A copy of the notice of lien shall be filed with the division. The lien shall continue until the registration fee and accrued penalties are paid. Upon satisfaction of the lien, the division shall notify the registered owner of the release of lien and shall file a copy of such release in the office of the secretary of state in which the notice of lien was recorded.

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B. After due notice and hearing to the registered owner, the division may bring an action in the magistrate court in the county in which the aircraft is found to collect the registration fee and accrued penalties by seizure of the aircraft from the person in possession and by sale as provided in Section 39-5-1 N.M. Stat. Ann.. Prior to the hearing, the division shall notify all lienholders of record of the impending action. The costs of identifying these lienholders and of bringing such action in magistrate court may be added to the amount owed by the owner. The division shall promulgate rules and regulations to provide a hearing to any delinquent owner prior to seizure of any aircraft under this subsection.