Section 18-504 - Enforcement of lien. - Maryland Statutes

§ 18-504. Enforcement of lien.
 

(a)  Sale of property; disposition of proceeds.-  

(1) If the occupant is in default for a period of more than 60 days, the operator may enforce the lien by selling the property stored in the leased space at a public sale, for cash. 

(2) Proceeds from the sale shall be applied to satisfy the lien, and any surplus shall be disbursed as provided in subsection (e) of this section. 

(b)  Notice required.- Before conducting a sale under subsection (a), the operator shall: 

(1) Notify the occupant of the default by regular mail at the occupant's last known address; 

(2) Send a second notice of default by certified mail, return receipt requested, to the occupant at the occupant's last known address which includes: 

(i) A statement that the contents of the occupant's leased space are subject to the operator's lien; 

(ii) A statement of the operator's claim, indicating the charges due on the date of the notice, the amount of any additional charges which shall become due before the date of sale, and the date those additional charges shall become due; 

(iii) A demand for payment of the charges due within a specified time, not less than 14 days after the date that the notice was mailed; 

(iv) A statement that unless the claim is paid within the time stated, the contents of the occupant's space will be sold at a specified time and place; and 

(v) The name, street address, and telephone number of the operator, or his designated agent, whom the occupant may contact to respond to the notice; and 

(3) At least 3 days before the sale, advertise the time, place, and terms of the sale in a newspaper of general circulation in the jurisdiction where the sale is to be held. 

(c)  Redemption before sale.- At any time before a sale under this section, the occupant may pay the amount necessary to satisfy the lien and redeem the occupant's personal property. 

(d)  Location of sale.- The sale under this section shall be held at the self-service storage facility where the personal property is stored. 

(e)  Responsibilities of operator.- If a sale is held under this section, the operator shall: 

(1) Satisfy the lien from the proceeds of the sale; and 

(2) Hold the balance, if any, for delivery on demand to the occupant or any other recorded lienholders. 

(f)  Rights of good faith purchaser.- A purchaser in good faith of any personal property sold under this subtitle takes the property free and clear of any rights of: 

(1) Persons against whom the lien was valid; and 

(2) Other lienholders. 

(g)  Liability of operator.- If the operator complies with the provisions of this subtitle, the operator's liability: 

(1) To the occupant shall be limited to the net proceeds received from the sale of the personal property; and 

(2) To other lienholders shall be limited to the net proceeds received from the sale of any personal property covered by that other lien. 

(h)  Denial of access to leased space.- If an occupant is in default, the operator may deny the occupant access to the leased space. 

(i)  Form and method of notice.-  

(1) Unless otherwise specifically provided, all notices required by this subtitle shall be sent by certified mail, return receipt requested. 

(2) (i) Notices sent to the operator shall be sent to the self-service storage facility where the occupant's property is stored. 

(ii) Notices to the occupant shall be sent to the occupant at the occupant's last known address. 

(3) Notices shall be deemed delivered when deposited with the United States Postal Service, properly addressed as provided in subsection (b), with postage prepaid. 

(j)  Records to be retained by operator.- The operator shall retain a copy of the second notice of default and the return receipt as provided in subsection (b) (2) of this section for 6 months following the date of the lien sale. 
 

[1983, ch. 521.]