35-13 Repairman's Lien - North Dakota Statutes

Download pdf

Loading PDF...

CHAPTER 35-13REPAIRMAN'S LIEN35-13-01. Repairman's lien authorized. Any blacksmith, machinist, farm equipmentdealer, welder, garage keeper, mechanic, or aviation operator, having an established place of
business within this state who makes, alters, or repairs any automobile, truck, engine, combine,
tractor, farm equipment, well machine, aircraft, or watercraft at the request of the owner or legal
possessor of the property has a lien thereon, and on any accessories and parts placed upon the
property, for reasonable charges for work done and materials furnished, until the charges are
paid. If the cost of repair would exceed one thousand dollars or twenty-five percent or, two
thousand five hundred dollars or twenty-five percent for property used for agricultural purposes,
of the value of the property, in its repaired condition, whichever is greater, and the repairman
intends to have the entire repair bill constitute a lien with priority over the mortgage or financing
statement of record, the repairman shall give notice by registered or certified mail to the
recordholder of the mortgage or financing statement of the proposed repair, the estimated cost of
repair, and the estimated value of the property in its repaired condition.35-13-02. Lien statement - Contents - When required - Filing.1.The secretary of state shall prescribe one form that can be used to obtain a lien
under this section and also be entered in the central indexing system. A person
entitled to a lien under this chapter who retains possession of the property made,
altered, or repaired is not required to file any statement to perfect the lien. If the
possession of the property so made, altered, or repaired is relinquished, the person
shall file, within ninety days, or if the property is used for agricultural purposes within
one hundred twenty days, or in the exploration for or the production of oil or gas
within six months, after the materials are furnished or the labor is completed, in the
office of the recorder of the county in which the owner or legal possessor of the
property resides, a verified written statement showing:a.The labor performed.b.The materials furnished.c.The price agreed upon for the labor performed or materials furnished, or, if no
price was agreed upon, the reasonable value thereof.d.The name of the person for whom the labor was performed or to whom the
materials were furnished.e.The social security number, if available, or, in the case of a debtor doing
business other than as an individual, the internal revenue service taxpayer
identification number, if available, of the person for whom the labor was
performed or to whom the materials were furnished.f.The name and address of the person claiming the lien.g.A description of the property upon which the lien is claimed.2.A person filing a verified statement shall within thirty days serve notice of the filing,
by registered mail, upon the owner or legal possessor of the property. A person
entitled to the lien who fails to file a verified statement within the time limited in this
section is deemed to have waived the right to a lien.3.A lienholder may file an amendment to add or correct the social security number or
internal revenue service taxpayer identification number of the debtor, to correct the
spelling of the debtor's or lienholder's name, or to correct or change the address of
the lienholder. The secretary of state shall prescribe a form that may be used toPage No. 1amend the repairman's lien that has been filed pursuant to this section.Theamendment of the lien does not affect the priority of the lien.35-13-03.Separate articles of personal property may be included in one lienstatement. Any person entitled to a lien under this chapter who makes, alters, or repairs more
than one article of personal property for the same owner or legal possessor may include all the
articles of personal property so made, altered, or repaired within ninety days, or if the property is
used for agricultural purposes within one hundred twenty days, or in the exploration for or the
production of oil or gas within six months, preceding the filing of the lien statement in the same
statement, and the statement has the same force and effect as though a separate statement had
been filed for each article.35-13-04. Priority of lien. A lien obtained under this chapter has priority over all otherliens, chattel mortgages, or encumbrances against the personal property upon which the lien is
secured, but if the repairman has failed to notify the recordholder of the mortgage or financing
statement as provided in section 35-13-01, or if such notice was given and the holder of the
mortgage or financing statement, within five days after receiving such notice, communicated in
writing to the repairman an objection to all the proposed repair costs becoming a lien against the
property with priority over the mortgage or financing statement, then only that portion of the
repairman's lien up to one thousand dollars or twenty-five percent, or two thousand five hundred
dollars or twenty-five percent for property used for agricultural purposes, of the retail value,
whichever is greater, in its repaired condition, has priority over the mortgage or financing
statement.35-13-05. Notice before foreclosure to prior mortgagee. A person holding a lienunder this chapter on property which has been encumbered previously by mortgage, before
beginning any action or proceeding for the foreclosure of the lien, shall give twenty days' notice in
writing of the lienholder's intention to foreclose the lien to the recordholder of the mortgage. The
notice may be served by registered or certified mail addressed to the recordholder at the
recordholder's last-known post-office address.35-13-06. Mortgagee may pay amount of lien - Assignment of lien. The holder ofany mortgage against property on which a lien has been filed under the provisions of this chapter
may pay the amount due on the lien at any time previous to a sale upon the foreclosure thereof.
Upon payment of the lien by a mortgageholder, the holder of the lien shall assign it to such
mortgageholder, and thereafter the mortgageholder is entitled to all the rights which the person
filing the lien had before the lien was paid.Page No. 2Document Outlinechapter 35-13 repairman's lien