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HB 237 Utah

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  • HB 237 Utah

    2/22/2011 Bill Received from House for Enrolling LRGCEN
    2/23/2011 Draft of Enrolled Bill Prepared LRGCEN
    3/15/2011 Enrolled Bill Returned to House or Senate HCLERK
    3/16/2011 House/ enrolled bill to Printing HCLERK
    3/16/2011 House/ to Governor EGOV
    3/21/2011 Governor Signed LTGOV

    H.B. 237




    Chief Sponsor: Julie Fisher

    Senate Sponsor: J. Stuart Adams

    8 General Description:
    9 This bill modifies a provision relating to the enforcement of storage facility liens.
    10 Highlighted Provisions:
    11 This bill:
    12 . requires a notice of a lien enforcement action involving the sale of a motor vehicle,
    13 vessel, or outboard motor to be sent to the last known address of the registered
    14 owner, as disclosed by the records of the Motor Vehicle Division.
    15 Money Appropriated in this Bill:
    16 None
    17 Other Special Clauses:
    18 None
    19 Utah Code Sections Affected:
    20 AMENDS:
    21 38-8-3, as last amended by Laws of Utah 2009, First Special Session, Chapter 5
    23 Be it enacted by the Legislature of the state of Utah:
    24 Section 1. Section 38-8-3 is amended to read:
    25 38-8-3. Enforcement of lien -- Notice requirements -- Sale procedure and effect.
    26 A claim of an owner which has become due against an occupant and which is secured
    27 by the owner's lien may be satisfied as follows:

    (1) No enforcement action may be taken by the owner until the occupant has been in
    29 default continuously for a period of 30 days.
    30 (2) After the occupant has been in default continuously for a period of 30 days, the
    31 owner may begin enforcement action if the occupant has been given notice in writing. The
    32 notice shall be delivered in person or sent by certified mail to the last known address of the
    33 occupant[, and a]. If the property to be sold in an enforcement action includes a motor vehicle,
    34 vessel, or outboard motor, the notice shall also be delivered to the last known address of the
    35 registered owner, as disclosed by the records of the Motor Vehicle Division. A copy of the
    36 notice shall, at the same time, be sent to the sheriff of the county where the self-service storage
    37 facility is located. Any lienholder with an interest in the property to be sold or otherwise
    38 disposed of, of whom the owner has knowledge either through the disclosure provision on the
    39 rental agreement or through the existence of a validly filed and perfected UCC-1 financing
    40 statement with the Division of Corporations and Commercial Code, or through other written
    41 notification, shall be included in the notice process as set forth in this section.
    42 (3) This notice shall include:
    43 (a) an itemized statement of the owner's claim showing the sum due at the time of the
    44 notice and the date when the sum became due;
    45 (b) a brief and general description of the personal property subject to the lien, which
    46 description shall be reasonably adequate to permit the person notified to identify the property;
    47 except that any container including, but not limited to, a trunk, valise, or box that is locked,
    48 fastened, sealed, or tied in a manner which deters immediate access to its contents may be
    49 described as such without describing its contents;
    50 (c) a notification of denial of access to the personal property, if such denial is permitted
    51 under the terms of the rental agreement, which notification shall provide the name, street
    52 address, and telephone number of the owner or his designated agent whom the occupant may
    53 contact to respond to the notification;
    54 (d) a demand for payment within a specified time not less than 15 days after delivery of
    55 the notice; and
    56 (e) a conspicuous statement that, unless the claim is paid within the time stated in the
    57 notice, the personal property will be advertised for sale or other disposition and will be sold or
    58 otherwise disposed of at a specified time and place.

    (4) Any notice made under this section shall be presumed delivered when it is
    60 deposited with the United States postal service and properly addressed with postage prepaid.
    61 (5) (a) After the expiration of the time given in the notice, an advertisement of the sale
    62 or other disposition shall be published:
    63 (i) (A) if there is a newspaper of general circulation in the county where the
    64 self-service storage facility is located, once a week for two consecutive weeks in a newspaper
    65 of general circulation in that county; or
    66 (B) if there is not a newspaper of general circulation in the county where the
    67 self-service storage facility is located, by posting the advertisement of sale or other disposition
    68 in not less than six conspicuous places in the neighborhood where the self-service storage
    69 facility is located; and
    70 (ii) in accordance with Section 45-1-101 for two weeks.
    71 (b) The advertisement described in Subsection (5)(a) shall include:
    72 (i) a brief and general description of the personal property reasonably adequate to
    73 permit its identification as provided for in Subsection (3)(b); the address of the self-service
    74 storage facility and the number, if any, of the space where the personal property is located; and
    75 the name of the occupant and his last known address; and
    76 (ii) the time, place, and manner of the sale or other disposition, which sale or other
    77 disposition shall take place not sooner than 15 days after the first publication.
    78 (6) Any sale or other disposition of the personal property shall conform to the terms of
    79 the notice provided for in this section.
    80 (7) Any sale or other disposition of the personal property shall be held at the
    81 self-service storage facility or at the nearest suitable place to where the personal property is
    82 held or stored.
    83 (8) Before any sale or other disposition of personal property under this section, the
    84 occupant may pay the amount necessary to satisfy the lien and the reasonable expenses incurred
    85 under this section and thereby redeem the personal property; upon receipt of this payment, the
    86 owner shall return the personal property, and thereafter the owner shall have no liability to any
    87 person with respect to that personal property.
    88 (9) A purchaser in good faith of the personal property sold to satisfy a lien as provided
    89 for in this chapter takes the property free of any rights of persons against whom the lien was

    valid and free of any rights of a secured creditor, despite noncompliance by the owner with the
    91 requirements of this section.
    92 (10) In the event of a sale under this section, the owner may satisfy his lien for the
    93 proceeds of the sale, subject to the rights of any prior lienholder; the lien rights of the prior
    94 lienholder are automatically transferred to the proceeds of the sale; if the sale is made in good
    95 faith and is conducted in a reasonable manner, the owner shall not be subject to any surcharge
    96 for a deficiency in the amount of a prior secured lien, but shall hold the balance, if any, for
    97 delivery to the occupant, lienholder, or other person in interest; if the occupant, lienholder, or
    98 other person in interest does not claim the balance of the proceeds within one year of the date
    99 of sale, it shall become the property of the Utah state treasurer as unclaimed property with no
    100 further claim against the owner.
    101 (11) If the requirements of this chapter are not satisfied, if the sale of the personal
    102 property is not in conformity with the notice of sale, or if there is a willful violation of this
    103 chapter, nothing in this section affects the rights and liabilities of the owner, occupant, or any
    104 other person.
    [email protected]

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