TITLE 49

MOTOR VEHICLES

CHAPTER 17

LABOR AND MATERIAL LIENS

49-1705.  Sale to satisfy liens. (1) When a possessory lienholder is not paid the amount of the lien due, within ten (10) days after the same becomes due, the lienholder may proceed to conduct a sale as provided by this section to satisfy the lien and costs of sale, if an authorization to conduct a lien sale has been issued by the department, or a judgment has been entered in favor of the lienholder on the claim which gives rise to the lien, or the registered and legal owners of the vehicle have signed, after the lien has arisen, a release of any interest in the vehicle.

(2)  A possessory lienholder may apply to the department for the issuance of an authorization to conduct a lien sale. The application shall include all of the following information:

(a)  A description of the vehicle, including make, vehicle identification number, and license number;

(b)  The names and addresses of the registered and legal owners of the vehicle, if ascertainable from registration certificates within the vehicle, and the names and addresses of other persons whom the lienholder knows or reasonably should know to claim an interest in the vehicle;

(c)  A statement of the amount of the lien and the facts concerning the claim which give rise to the lien; and

(d)  A statement that the lienholder has no information or belief that there is a valid defense to the claim which gives rise to the lien.

(3)  Upon receipt of an application, the department shall send a copy of the application to the registered and legal owners at their addresses of record with the department and to any other interested persons listed in the application. The department shall also send a notice which shall include the following information:

(a)  That an application has been made with the department for the issuance of an authorization to conduct a lien sale;

(b)  That the person has a legal right to a hearing in court;

(c)  That if a hearing in court is desired, an enclosed declaration of opposition must be signed and returned;

(d)  That if the declaration is signed and returned, the possessory lienholder will be allowed to sell the vehicle only if he obtains a judgment in court or obtains a release from the registered and legal owners;

(e)  That the department will issue the authorization to conduct a lien sale unless the person signs and returns the declaration of opposition within ten (10) days after the date the notice was mailed; and

(f)  That the person may be liable for costs if the lienholder brings an action and if a judgment is entered in favor of the lienholder.

(4)  If the department receives a timely mailed declaration of opposition, it shall notify the possessory lienholder that he may not conduct a lien sale unless:

(a)  A judgment has been entered in his favor on the claim which gives rise to the lien; or

(b)  The registered and legal owners of the vehicle have signed a release of any interest in the vehicle.

(5)  An applicant shall include with his application for lien sale a fee of ten dollars ($10.00) which shall be deposited in the abandoned vehicle trust account. The fee shall be recoverable as a cost by the lienholder.

History:

[49-1705, added 1988, ch. 265, sec. 412, p. 790; am. 1998, ch. 392, sec. 24, p. 1229.]