23-4,146. Lien upon vehicles, vessels, aircraft.
23-4,146
23-4,146. Lien upon vehicles, vessels, aircraft.(a) Whenever there is an arrearage in payment of an orderof support in an amount equal to or greater than the amount of supportpayable for one month, a lien shall arise by operation of law uponcertain personal property of the obligor. The lien may be perfectedas follows:
(1) In the case of a vehicle, thesecretary may perfect a lien on the vehicle by filing a notice of lien withthedivision ofvehicles of the department of revenue.The perfection of the lien shall not bein effect until the notation of the lien is actually placed upon thecertificate of title for the vehicle.The notice shall be in a formprescribed by the division, or on a federal form as required by title IV-D,and shall contain a description of the vehicle,the name and address of the obligee or secretary, the name and last knownaddress of the obligor and any other information required by the division. Thenotice shall state the amount of the arrearage and that thearrearage is equal to or greater than the amount of support payable for onemonth. A copy of the notice of lien shall besent by first-class mail tothe obligor at the obligor's last known address.
Upon the filing of the notice of lien in accordance with this subsection(a)(1) and payment to the division of a fee of $5, the division shallbe authorized to demand in writing the surrenderof the title certificate from the owner of the vehicle for the purpose ofrecording the lien on the title certificate. Once the lien is properlyrecorded and perfected by actually noting it on the certificate of title, atransfer of title is not validunless the lien has been releasedin the manner provided by K.S.A. 8-135 and amendments thereto or thetransfer has been consented to in writing by the lienholder.If the obligor fails to surrender the title certificatewithin 15 days after the written demandby the division of vehicles, the division shall notify the obligee seeking toperfect thelien. The obligee may obtain an order of the courtwhich issued the support order requiring the obligor tosurrender the titlecertificate so that the lien may be properlyrecorded.Notwithstandingany provision of this section authorizing a lien on a vehicle of an obligor,no lien shall attach to any vehicle which the obligor has transferred toanother person who has purchased the vehicle or accepted it by trade inexchange for other property or services in good faith, for value, prior to thetime that the lien on the vehicle has been noted and perfected in the mannerprovided by this subsection (a)(1).
(2) In the case of a vessel or aircraft, the obligee may perfect a lien onthe vessel or aircraft by filing anotice of lien withthe office where filing is required by K.S.A. 84-9-401 and amendmentsthereto to perfect a security interest in the vessel or aircraft.The perfection of the lien shall notbe in effect until the notation of the lien is actually placed upon theappropriate documentation of title for the vessel or aircraft. Thenotice shall contain a description of the make, model designation andserial number of the vessel or aircraft, including its identificationor registration number, if any; the name and address of the obligee; and thename and last known address of the obligor. Thenotice shall state the arrearage and that the arrearage is equal toor greater than the amount of support payable for one month.A copyof the notice of lien shall be sent simultaneously byfirst-classmail to the obligor at the obligor's last known address.
Upon the filing of the notice of lien in accordance with this subsection(a)(2) and payment of a fee of $5, the notice of lien shall be retained bythe office where filed and may be enforced and foreclosed in the samemanner as a security agreement under the provisions of the uniformcommercial code. If the notice oflien is filed in theoffice of the secretary of state, the filing officer shall file, index,amend, maintain, remove and destroy thenotice of lien in thesame manner as a financing statement filed under part 4 of article 9 of theuniform commercial code. The secretary of state shall charge the samefiling and information retrieval fees and credit the amounts in the samemanner as financing statements filed under part 4 of article 9 of theuniform commercial code.Notwithstandingany provision of this section authorizing a lien on a vessel or aircraft of anobligor, no lien shall attach to any vessel or aircraft which the obligor hastransferred to another person who has purchased the vessel or aircraft oraccepted it by trade in exchange for other property or services in good faith,for value, prior to the time that the lien on the vessel or aircraft has beennoted and perfected in the manner provided by this subsection (a)(2).
(3) In any case filed under chapter 60 or 61 of the Kansas StatutesAnnotated, the obligee may perfect a lien on the obligor's interest in anyjudgment or settlement in the case by filing a notice of lien with the clerk ofthe district court. Copies shall be served on appropriate parties to theaction. The notice of lien shall have the effect of attaching the obligor'sinterest in any judgment or settlement in the case. Any person holdingproperty or funds to satisfy any judgment or settlement in the obligor's favorshall be prohibited from transferring to the obligor any of such property orfunds without the written consent of the obligee. At the time that the holderwould otherwise be required to transfer property to the obligor, such propertyshall be transferred to the obligee unless the lien on the property has beenreleased. Nothing in this subsection shall be construed to require the holderto transfer any property to the obligee any sooner than the holder would havebeen required to transfer property to the obligor. To the extent that anattorney's lien on the obligor's interest in any settlement or judgment isperfected before service of the notice of lien under this section, theattorney's lien shall have priority. If the property or funds areinsufficient to satisfy all liens, the court shall conduct a hearing todetermine the division of such property or funds for payment on each lien.
Any person affected by the notice of lien who is or will be a payor asdefined in the income withholding act and amendments thereto may request thatthe obligee proceed under the income withholding act and release the lienperfected pursuant to this section.
(4) If the obligor is or may become entitled to workers compensationbenefits, the obligee may perfect a lien on the benefits by serving a notice oflien on the obligor. Copies shall be served on appropriate persons, includingbut not limited to the director of workers compensation. The notice of lienshall have the effect of attaching the obligor's interest in the workerscompensation benefits. Any person holding property or funds to satisfy theobligor's interest shall be prohibited from transferring to the obligor any ofsuch property or funds without the written consent of the obligee. At the timethat the holder would otherwise be required to transfer property to theobligor, such property shall be transferred to the obligee unless the lienon the property has been released. Nothing in this subsection shall beconstrued to require the holder to transfer any property to the obligee anysooner than the holder would have been required to transfer property to theobligor. To the extent that attorney fees are allowed by K.S.A. 44-501 et seq.and amendments thereto, the attorney fees shall have priority subject to thecurrent limitations provided in K.S.A. 44-720, and amendments thereto.
Any person affected by the notice of lien who is or will be a payor asdefined in the income withholding act and amendments thereto may request thatthe obligee proceed under the income withholding act and release the lienperfected pursuant to this section.
(b) As used in this section:
(1) "Aircraft" has the meaning provided by K.S.A. 3-201 and amendmentsthereto.
(2) "Vehicle" has the meaning provided by K.S.A. 8-126 and amendmentsthereto.
(3) "Vessel" has the meaning provided by K.S.A. 82a-801 and amendmentsthereto.
(4) "Arrearage," "title IV-D," "obligor" and "order forsupport" have themeanings provided by K.S.A. 23-4,106 and amendments thereto.
(5) "Obligee" means the person or entity to whom a duty of support isowed, including but not limited to any title IV-D agency.
(6) "Workers compensation" has the meaning provided by K.S.A. 44-501 et seq.and amendments thereto.
(7) "Attorney's lien" has the meaning provided by K.S.A. 7-108 andamendmentsthereto.
History: L. 1985, ch. 115, § 29;L. 1986, ch. 137, § 21;L. 1997, ch. 182, § 31; July 3.