55-2009B. SALE TO SATISFY LIENS. (1) When a home has been abandoned, the landlord, as the possessory lienholder, may proceed to conduct a sale of the abandoned home to satisfy the lien and costs of sale, if an authorization to conduct a lien sale has been issued by the department or a judgment has been entered in favor of the landlord on the claim which gives rise to the lien or the legal owner of the home and any lienholder have signed a release of any interest in the home.

(2) A possessory lienholder may apply to the department for the issuance of an authorization to conduct a lien sale. The application shall include all of the following information:

(a) A description of the abandoned home including the year and make and the vehicle identification number;

(b) The names and addresses of the legal owners of the abandoned home, if known, and the names and addresses of other persons whom the lienholder knows or reasonably should know to claim an interest in the home;

(c) A statement of the amount of the lien and the facts concerning the claim that give rise to the lien; and

(d) A statement that the lienholder has no information or belief that there is a valid defense to the claim that gives rise to the lien.

(3) Upon receipt of an application, the department shall send a copy of the application to the legal owners at their addresses of record with the department and to any other interested persons listed in the application. The department shall also send a notice which shall include the following information:

(a) That an application has been made with the department for the issuance of an authorization to conduct a lien sale;

(b) That the person has a legal right to a hearing in court;

(c) That if a hearing in court is desired, an enclosed declaration of opposition must be signed and returned;

(d) That if the declaration is signed and returned, the possessory lienholder will be allowed to sell the abandoned home only if he obtains a judgment in court or obtains a release from the legal owners;

(e) That the department will issue the authorization to conduct a lien sale unless the person signs and returns the declaration of opposition within ten (10) days after the date the notice was mailed; and

(f) That the person may be liable for costs if the lienholder brings an action and if a judgment is entered in favor of the lienholder.

(4) If the department receives a timely mailed declaration of opposition, it shall notify the possessory lienholder that he or she may not conduct a lien sale unless:

(a) A judgment has been entered in his or her favor on the claim which gives rise to the lien; or

(b) The legal owners of the abandoned home have signed a release of any interest in the home.

(5) An applicant shall include with his application for lien sale a fee of ten dollars ($10.00), which shall be deposited in the abandoned vehicle trust account. The fee shall be recoverable as a cost by the lienholder.

History:

[55-2009B, added 2011, ch. 184, sec. 11, p. 528.]