Bill Text - HB1584 (2018)

Relative to a landlord's ability to sell personal property of a commercial tenant.

Revision: Nov. 13, 2017, 9:20 a.m.










AN ACT relative to a landlord's ability to sell personal property of a commercial tenant.


SPONSORS: Rep. Wallace, Rock. 33; Rep. Hinch, Hills. 21; Sen. Carson, Dist 14


COMMITTEE: Judiciary






This bill allows a landlord of a commercial rental to sell the personal property of a tenant 30 days after termination of the tenancy and giving notice to lienholders of the property.


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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.






In the Year of Our Lord Two Thousand Eighteen


AN ACT relative to a landlord's ability to sell personal property of a commercial tenant.


Be it Enacted by the Senate and House of Representatives in General Court convened:


1  New Section; Actions Against Tenant; Sale of Property of Commercial Tenant.  Amend RSA 540 by inserting after section 30 the following new section:

540:31  Sale of Property of Commercial Tenant.  Upon the termination of the tenancy of a nonrestricted commercial rental property, the landlord may dispose of the personal property, including motor vehicles, of the tenant as follows:

I.  If any of the rent and other lawful charges shall remain unpaid for 30 days, and after complying with the provisions of this section, the landlord may sell such personal property at a private or public sale, and the proceeds shall first be applied to satisfy such rent or other lawful charges.  Proceeds remaining after the sale and payment of rent and other lawful charges to the landlord shall then be paid to any lienholders of record, as their interests may appear, with any remaining proceeds to be paid to the tenant.

II.  Prior to any sale, a landlord shall inquire in writing, by verified mail, to determine from   the division of motor vehicles of the department of safety, the secretary of state, and the town clerk with regard to the personal property, whether a lien exists upon the  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, secretary of state, or the town clerk within 14 days after such inquiry is sent by verified mail, the owner may proceed to sell or otherwise dispose of such personal property as prescribed by this section.

III.  If the determination is made under the procedure described in paragraph II that a lien exists, a notice of sale under this chapter shall be sent by verified mail to the last known address of each holder of a security interest or lienholder  having a recorded lien on said personal property.  The notice shall state the time and place of the sale, the property to be sold, and the amount of the rent and other lawful charges owed.  The notice shall be sent at least 20 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 landlord's possession within 20 days of the date of mailing of the notice of the sale.  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 landlord shall not be responsible for determining priority as between any competing lienholders.

IV.  A notice of the sale shall be served upon the commercial tenant in person or by 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 and other lawful charges owed.

V.  The landlord shall cause a copy of the notices under paragraph III and an affidavit of service under paragraph IV, with an account of the sale and of the fees and charges thereon, to be recorded in the books of the town where the sale takes place.  A certified copy of the record may be used in evidence.

VI.  For purposes of this section, "motor vehicle'' means a motor vehicle as defined in RSA 259:60, a motorcycle as defined in RSA 259:63, and any boat, watercraft, or motorized vehicle including any "off highway recreational vehicle'' as defined in RSA 215-A:1, VI or any snowmobile as defined in RSA 215-C:1.

2  Effective Date.  This act shall take effect January 1, 2019.