§ 44A-43. Enforcement of self-service storage facility lien. - North Carolina Statutes

§ 44A‑43.  Enforcementof self‑service storage facility lien.

(a)        If the rent andother charges for which the lien is claimed under this Article remain unpaid orunsatisfied for 15 days following the maturity of the obligation to pay rent,the owner may enforce the lien by a public sale or other disposition of theproperty as provided in this section. The owner may bring an action to collectrent and other charges in any court of competent jurisdiction at any timefollowing the maturity of the obligation to pay the rent.

The occupant or any otherperson having a security or other interest in the property stored in the self‑servicestorage facility may bring an action to request the immediate possession of theproperty, at any time following the assertion of the lien by the owner. Beforesuch possession is granted, the occupant or the person with a security or otherinterest in the property shall pay the amount of the lien asserted to the clerkof court in which the action is pending, or post a bond for double the amount.The clerk shall then issue an order to the owner to relinquish possession ofthe property to the occupant or other party.

(b)        Notice and Hearing:

(1)        If the property uponwhich the lien is claimed is a motor vehicle, the lienor, following the expirationof the 15‑day period provided by subsection (a), shall give notice to theDivision of Motor Vehicles that a lien is asserted and that a sale is proposed.The lienor shall remit to the Division a fee of two dollars ($2.00); and shallalso furnish the Division with the last known address of the occupant. TheDivision of Motor Vehicles shall issue notice by registered or certified mail,return receipt requested to the person having legal title to the vehicle, ifreasonably ascertainable, and to the occupant, if different, at his last knownaddress. The notice shall:

a.         State: (i) that alien is being asserted against the specific vehicle by the lienor or owner ofthe self‑service storage facility, (ii) that the lien is being assertedfor rental charges at the self‑service storage facility, (iii) the amountof the lien, and (iv) that the lienor intends to sell or otherwise dispose ofthe vehicle in satisfaction of the lien;

b.         Inform the personhaving legal title and the occupant of their right to a judicial hearing atwhich a determination will be made as to the validity of the lien prior to asale taking place; and

c.         State that the legaltitle holder and the occupant have a period of 10 days from the date of receiptof the notice in which to notify the Division of Motor Vehicles by registeredor certified mail, return receipt requested, that a hearing is desired tocontest the sale of the vehicle pursuant to the lien.

The person with legal title orthe occupant must, within 10 days of receipt of the notice from the Division ofMotor Vehicles, notify the Division of his desire to contest the sale of thevehicle pursuant to the lien, and that the Division should so notify lienor.

Failure of the person withlegal title or the occupant to notify the Division that a hearing is desiredshall be deemed a waiver of the right to a hearing prior to sale of the vehicleagainst which the lien is asserted. Upon such failure, the Division shall sonotify the lienor; the lienor may proceed to enforce the lien by a public saleas provided by this section; and the Division shall transfer title to theproperty pursuant to such sale.

If the Division is notifiedwithin the 10‑day period provided in this section that a hearing isdesired prior to the sale, the lien may be enforced by a public sale asprovided in this section and the Division will transfer title only pursuant tothe order of a court of competent jurisdiction.

(1a)      If the property uponwhich the lien is claimed is a motor vehicle and rent and other charges relatedto the property remain unpaid or unsatisfied for 60 days following the maturityof the obligation to pay rent, the lienor may have the property towed. If amotor vehicle is towed as authorized in this subdivision, the lienor shall notbe liable for the motor vehicle or any damages to the motor vehicle once thetower takes possession of the property.

(2)        If the property uponwhich the lien is claimed is other than a motor vehicle, the lienor followingthe expiration of the 15‑day period provided by subsection (a) shallissue notice to the person having a security or other interest in the property,if reasonably ascertainable, and to the occupant, if different, at his lastknown address. Notice given pursuant to this subdivision shall be presumeddelivered when it is properly addressed, first‑class postage prepaid, anddeposited with the United States Postal Service.

Thenotice shall:

a.         State: (i) that alien is being asserted against the specific property by the lienor, (ii) thatthe lien is being asserted for rental charges at the self‑service storagefacility, (iii) the amount of the lien, and (iv) that the lienor intends tosell or otherwise dispose of the property in satisfaction of the lien;

b.         Provide a brief andgeneral description of the personal property subject to the lien. Thedescription shall be reasonably adequate to permit the person notified toidentify it, except that any container including, but not limited to, a trunk,valise, or box that is locked, fastened, sealed, or tied in a manner whichdeters immediate access to its contents may be described as such withoutdescribing its contents;

c.         Inform the personwith a security or other interest in the property and occupant, if different,of their right to a judicial hearing at which a determination will be made asto the validity of the lien prior to a sale taking place;

d.         State that theperson with a security or other interest in the property or the occupant, ifdifferent, has a period of 10 days from the date of the mailing of the notice tonotify the lienor by registered, or certified mail, return receipt requested,that a hearing is desired, and that if the legal title holder or occupantwishes to contest the sale of his property pursuant to the lien he shouldnotify the lienor that a hearing is desired.

The person with a security orother interest in the property or the occupant must, within 10 days from thedate of the mailing of the notice from the lienor, notify the lienor of hisdesire for a hearing, and state whether or not he wishes to contest the sale ofthe property pursuant to the lien.

Failure of the person with asecurity or other interest in the property, or the occupant to notify thelienor that a hearing is desired shall be deemed a waiver of the right to ahearing prior to the sale of the property against which the lien is asserted.Upon such failure the lienor may proceed to enforce the lien by a public saleas provided by this section. Upon the expiration of the 10‑day notice,the occupant's tenancy shall be terminated, and the lienor may move theoccupant's property to another place of safekeeping.

If the lienor is notified,within the 10‑day period as provided by this section, that a hearing isdesired prior to the sale, the lien may be enforced by a public sale as providedin this section only pursuant to the order of a court of competentjurisdiction.

(c)        Public Sale. –

(1)        Not less than 20days prior to sale by public sale the lienor:

a.         Shall cause noticeto be delivered by registered or certified mail to the person having a securityinterest in the property if reasonably ascertainable, and to the occupant atthe occupant's last known address. Notice given pursuant to this subdivisionshall be presumed delivered when it is properly addressed, first‑classpostage prepaid, and deposited with the United States Postal Service.

b.         Repealed by SessionLaws 2009‑201, s. 1, effective October 1, 2009.

(1a)      Not less than fivedays prior to sale by public sale, the lienor shall publish notice of sale in anewspaper of general circulation in the county where the sale is to be held. Ifthere is no newspaper of general circulation in the county where the sale is tobe held, notice of sale shall be published in any publication that acceptsclassified advertisements and has a general circulation in the county where thesale is to be held.

(2)        The sale must beheld on a day other than Sunday and between the hours of 9:00 A.M. and 4:00P.M.:

a.         At the self‑servicestorage facility or at the nearest suitable place to where the property is heldor stored; or

b.         In the county wherethe obligation secured by the lien was contracted for.

(3)        A lienor maypurchase at public sale.

(d)        Notice of Sale. – Thenotice of sale shall include:

(1)        The name and addressof the lienor;

(2)        A statement to the effectthat various items of personal property are being sold pursuant to theassertion of a lien for rental at the self‑service storage facility;

(3)        The place, date, andtime of the sale.  (1981(Reg. Sess., 1982), c. 1275, s. 1; 2006‑264, s. 38.5; 2009‑201, s.1.)