The Vermont Statutes Online
Commerce and Trade
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.
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
(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.
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.
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.
(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.)