CHAPTER 207
HB 1290 – FINAL VERSION
05/16/12 2230s
2012 SESSION
05/03
HOUSE BILL 1290
AN ACT relative to notice of lien requirements.
SPONSORS: Rep. J. Belanger, Hills 5; Rep. McClarren, Hills 21; Rep. LeBrun, Hills 26
This bill defines verified mail and permits self-storage facility owners and other lienholders to contact state and local officials by verified mail, rather than registered or certified mail, to determine whether the property is subject to a perfected security lien. The bill also permits certain lienholders to provide notice of sale by verified mail.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
05/16/12 2230s
12-2490
05/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT relative to notice of lien requirements.
Be it Enacted by the Senate and House of Representatives in General Court convened:
207:1 New Paragraph; Self-Service Storage Facility Liens; Definition of Verified Mail Added. Amend RSA 451-C:1 by inserting after paragraph VI the following new paragraph:
VII. “Verified mail” means any method of mailing that is offered by the United States Postal Service or any other carrier, and which provides evidence of mailing.
207:2 Self-Service Storage Facility Liens; Notice to Lienholder and Notice of Sale. Amend RSA 451-C:4 and 451-C:5 to read as follows:
451-C:4 Notice to Lienholder.
I. An owner shall inquire in writing, by [certified mail return receipt requested] verified mail, to determine from the division of motor vehicles and the secretary of state with regard to a motor vehicle, and from the secretary of state with regard to other personal property, whether a lien exists upon the title to said motor vehicle or other personal property. Any such written inquiry that requests information on financing statements filed under RSA 382-A shall be in the form, and subject to the fees, required by that chapter. If no lien is found, or in the case where the inquiry had been made in writing and no response is received from the division of motor vehicles or the secretary of state within 14 days after such inquiry is [mailed] sent by verified mail, the owner may proceed to sell or otherwise dispose of such personal property as prescribed by this chapter.
II. If determination is made under the procedure described in paragraph I that a lien exists, a notice of sale under this chapter shall be sent by [registered or certified] verified mail to the last known address of each holder of a security interest or lienholder in accordance with RSA 382-A:9. The notice shall state the time and place of the sale, the property to be sold, and the amount of the rent, charges, fees, or expenses owed. The notice shall be sent at least 20 days prior to the date of the sale, except that in the case of a motor vehicle, notice shall be sent at least 30 days prior to the date of the sale. Notwithstanding any other provision of this chapter, any lienholder having a properly perfected lien or security interest shall be entitled to remove such personal property from the owner’s possession or from the occupant’s self-service storage facility unit within 20 days of the date of mailing of the notice of the sale, without attachment of the lien established under RSA 451-C:2 or any further obligation to the owner of the self-service storage facility. The lienholder’s right to possession of the personal property is established under this chapter notwithstanding the lack of breach by the owner of such personal property under the debt instrument or security agreement creating the lien or security interest on such property. The owner shall not be responsible for determining priority as between any competing lienholders. If the owner and the lienholder who has received the notice agree to store the personal property at the facility, the lienholder shall pay the amount of the rent, charges, fees, or expenses due from and after the date of the notice to the lienholder, and pay the monthly rental fee until such personal property is removed from the facility.
451-C:5 Notice of Sale. A notice of the sale shall be served upon the occupant in person or by [registered or certified] verified mail at the last known address, no less than 14 days before the sale, stating the time and place of sale, the property to be sold, and the amount of the rent, charges, fees, or expenses owed.
207:3 Abandoned Vehicles; Notice to Director of Division of Motor Vehicles; Department of Safety. Amend RSA 262:2, III to read as follows:
III. An operator of a place of business for garaging, repairing, parking, or storing vehicles for the public, in which a vehicle remains unclaimed for a period of 30 days, shall within 5 days after the expiration of that period, report the vehicle as unclaimed to the director. A vehicle left by its owner whose name and address are known to the operator or his employee is not considered unclaimed. A person who fails to report a vehicle as unclaimed in accordance with this paragraph forfeits all claims and liens for its garaging, parking, or storing and shall be fined not more than $25 for each day [his] the failure to report continues. The report required under this paragraph shall be by verified mail, as defined in RSA 451-C:1, VII.
207:4 Abandoned Vehicles; Disposal by Storage Company. Amend RSA 262:36-a, III to read as follows:
III. If the value of the vehicle is less than $1,000 or the vehicle is so vandalized, damaged, or in disrepair as to be unusable as a motor vehicle and only fit for salvage as determined in good faith through the application of reasonable automotive industry standards, the storage facility may dispose of the vehicle in 15 days without the notice required by RSA 262:38 and RSA 444. If the last place of abode of the owner of such vehicle is known to or may be ascertained by such storage facility by the exercise of reasonable diligence, the storage facility shall give notice of the time and place of the sale to the owner by [registered or certified] verified mail as defined in RSA 451-C:1, VII, or in person, at least 10 days prior to the disposal and upon written notice to the director subject to such rules as the department shall adopt pursuant to RSA 541-A.
207:5 Statutory Liens on Personal Property; Notice to Lienholder. Amend RSA 444:4-a to read as follows:
444:4-a Notice to Lienholder. A lienholder under this chapter shall inquire by writing, by [certified] verified mail [return receipt requested] as defined in RSA 451-C:1, VII, to determine from the division of motor vehicles of the department of safety, the secretary of state, and the town clerk with regard to a motor vehicle and from the secretary of state, and the town clerk with regard to other personal property, whether a lien exists upon the title to said motor vehicle or other personal property. Any such written inquiry that requests information on financing statements filed under RSA 382-A shall be in the form, and subject to the fees, required by that chapter. If no response is received by the lienholder from the department of safety, the secretary of state, or the town clerk within 14 days after such inquiry has been received, sale of the motor vehicle or personal property may proceed as prescribed by this chapter. If determination is made under the above procedure that a lien exists, a notice of the sale under this chapter shall be sent by [certified] verified mail [return receipt requested] as defined in RSA 451-C:1, VII to each lienholder having a recorded lien on said automobile or personal property. The notice shall be sent at least 14 days prior to the date of the sale and shall include the date, time, and place of said sale and the amount of the statutory lien claimed. Any lienholder having a recorded lien shall be entitled to redeem the personal property prior to the sale by payment of the amount of said statutory lien, and the lienholder shall have the right of possession from the individual or institution exercising said statutory lien.
207:6 Liens on Personal Property; Sale to Satisfy Debt. Amend RSA 451-B:3 to read as follows:
451-B:3 Sale to Satisfy Debt. If a debt for repair services remains unpaid for 60 days from the date that they are completed, the holder of the lien established by the previous section may sell the article at public sale in accordance with RSA 444:3, RSA 444:5, and, in the event a prior lienholder has been disclosed by the property owner, in accordance with the notice to lienholder provisions of RSA 444:4-a or RSA 450-A:4, as applicable, provided that the lienholder gives a 30-day written notice by [certified] verified mail, [return receipt requested] as defined in RSA 451-C:1, VII, to the owner of the article before such sale. The proceeds, after first paying the expense of sale, shall be applied in payment of the debt. After satisfying the requirements of RSA 444:5, the excess proceeds from such sale, if any, shall be paid over to the state treasurer in trust for the debtor.
207:7 Effective Date. This act shall take effect 60 days after its passage.
Approved: June 13, 2012
Effective Date: August 12, 2012