§3905. Enforcement of lien

Link to law: http://legislature.vermont.gov/statutes/section/09/098/03905
Published: 2015

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The Vermont Statutes Online



Title

09

:
Commerce and Trade






Chapter

098

:
STORAGE UNITS











 

§

3905. Enforcement of lien

In the event of

a default under the terms of a rental agreement, the lien created under this

chapter may be enforced in accordance with the provisions of this section.

(1) First notice

of default. No sooner than seven days after a default, the occupant shall be

notified of the default by regular mail sent to his or her last known address.

(2) Second

notice of default. No sooner than 14 days after mailing of the first notice,

the occupant shall be notified of the default by certified mail sent to his or

her last known address. The second notice shall contain the following:

(A) An itemized

statement of the owner's claim showing the sum due at the time of the notice

and the date when the sum became due.

(B) A brief and

general description of the personal property subject to the lien. There shall

be no requirement to describe the specific contents of a storage space in a

self-storage facility beyond stating that it is the contents of a specific

storage space in a specific self-storage facility rented by a specific

occupant.

(C) A notice of

denial of access to the personal property, if such denial is permitted under

the terms of the rental agreement.

(D) A demand for

payment within a specified time not less than fifteen days after the mailing of

the second notice of default.

(E) A

conspicuous statement that unless the claim is paid in full within the time

stated in the notice, the personal property will be advertised for sale and

sold according to law.

(3)

Advertisement. After the expiration of the time given in the second notice

under subdivision (2) of this section, an advertisement of the sale shall be

published once a week for two consecutive weeks in a newspaper of general

circulation where the self-storage facility is located. The advertisement shall

contain the following:

(A) A brief and

general description of the personal property as provided in subdivision (2)(B)

of this section.

(B) The address

of the self-storage facility and the number, if any, of the space where the

personal property is located and the name of the occupant.

(C) The time,

place, and manner of the sale. If there is no newspaper of general circulation

where the self-storage facility is located, the advertisement shall be posted

at least 15 days before the date of the sale at the town hall where the

self-storage facility is located in such fashion as the auction sales of real

property are posted.

(D) A sale or

other disposition of goods as provided for in this chapter shall not be

defeated or deemed not in compliance with this provisions of this chapter if

the owner attempted, but was not able to obtain personal service on those

persons entitled to notice or if the certified mail return receipt is not

signed by the person to whom notice must be sent, unless the owner fails to

publish in accordance with this section.

(4) Notice to

other lienholders. Before the expiration of the time given in the second notice

under subdivision (2) of this section, the owner shall determine whether the

occupant owns any personal property subject to an active lien registered with

the Vermont Secretary of State. If any such lien exists, the lienholder shall

be notified by certified mail not less than 21 days prior to the sale of the

property. Such notice shall include the following:

(A) A statement

describing the property to be sold. There shall be no requirement to describe

the specific contents of a storage space in a self-storage facility beyond

stating that it is the contents of a specific storage space in a specific

self-storage facility rented by a specific occupant.

(B) A statement

of the lienholder's rights under this chapter.

(C) A statement

of the time, place, and manner of the sale of the property.

(5) Sale. Upon

fulfillment of the notification and advertisement requirements of this section,

sale of the personal property shall be permitted, provided the following

conditions are met:

(A) The sale of

the personal property shall take place not sooner than 15 days after the first

publication under subdivision (3) of this section.

(B) Any sale of

the personal property under this chapter shall conform to the terms of all

notifications required under this section. If the sale will not or does not

take place as provided for in the notifications, then subsequent notifications

shall be made in the same manner as the original notifications had been made.

(C) Any sale of

the personal property shall be held at the self-storage facility, or at the

nearest suitable place.

(D) Any sale of

the personal property shall be performed in a commercially reasonable manner,

meaning the owner sells the goods in the usual manner in any recognized market

therefor, at the price current in such market at the time of the sale; or

otherwise sold in conformity with commercially reasonable practices among

dealers in the type of goods sold; however, the sale of more goods than

apparently necessary to ensure satisfaction of the obligation is not

commercially reasonable unless necessary due to the nature of the goods being

sold or the manner in which they are customarily sold. The fact that a better

price could have been obtained by sale at a different time or by a different

method from that selected by the owner is not of itself sufficient to establish

that the sale was not made in a commercially reasonable manner.

(E) Any sale or

disposition of a motor vehicle shall be performed pursuant to 23 V.S.A. chapter

21 and any sale or disposition of a vessel, snowmobile, or all-terrain vehicle

shall be performed pursuant to 23 V.S.A. chapter 36.

(6) Right of

satisfaction. Before any sale of personal property pursuant to this chapter,

the occupant may pay the amount necessary to satisfy the lien in full and the

reasonable expenses incurred under this section, and thereby redeem the

personal property. Upon receipt of such payment, the owner shall return the

personal property, and thereafter the owner shall have no liability to any

person with respect to such personal property.

(7) Proceeds in

excess of lien amount. In the event of sale under this section, the owner may

satisfy the owner's lien from the proceeds of the sale, but shall hold the

balance, if any, for delivery on demand to the occupant. If the occupant does

not claim the balance of the proceeds such funds shall be paid over without

interest to the Treasurer of the State of Vermont in accordance with 27 V.S.A.

chapter 14.

(8) Rights of

other lienholders. The holder of any perfected lien or security interest on

personal property stored in the storage unit and registered with the Vermont

Secretary of State may take possession of its liened property at any time prior

to sale or other disposition.

(9) Rights of

purchasers. A purchaser in good faith of the personal property sold to satisfy

a lien, as provided elsewhere in this chapter, takes the property free of any

rights of persons against whom the lien was valid, despite noncompliance by the

owner with the requirements of this chapter. (Added 2007, No. 183 (Adj. Sess.),

§ 2, eff. Jan. 1, 2009.)
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