35-33 Self-Service Storage Facility Liens
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<![CDATA[CHAPTER 35-33SELF-SERVICE STORAGE FACILITY LIENS35-33-01. Definitions. As used in this chapter, unless the context otherwise requires:1."Default" means failure of the occupant to pay the rent and other charges at the time<br>and in the manner set forth in the rental agreement.2."Last-known address" means the address provided by the occupant in the latest<br>rental agreement or the address provided by the occupant in a subsequent written<br>notice of a change of address.3."Occupant" means the person who rents storage space at a self-service storage<br>facility under a rental agreement, or a sublessee, successor, or assignee.4."Owner" means any person who owns, leases, subleases, manages, or operates a<br>self-service storage facility and receives rent from an occupant under a rental<br>agreement.5."Personal property" means movable property not affixed to land, including<br>merchandise and household goods.6."Rental agreement" means a written agreement between the owner and the<br>occupant which establishes or modifies the terms and conditions of the occupant's<br>use of storage space at a self-service storage facility.7."Self-service storage facility" means any real property used for renting or leasing<br>individual storage spaces in which occupants customarily store and remove their<br>personal property. The term does not include a garage used principally for parking<br>motor vehicles; any property of a financial institution which contains vaults, safe<br>deposit boxes, or other receptacles for the purposes and benefits of the financial<br>institution's customers; or a warehouse or a public warehouse where warehouse<br>receipts, bills of lading, or other documents of title are issued for the personal<br>property stored.8."Storage space" means an enclosure, cubicle, or room that is fully enclosed and<br>equipped with a door designed to be locked for security by the occupant.35-33-02. Lien against property. The owner of a self-service storage facility has a lienon all personal property stored under a rental agreement in a storage space at the self-service<br>storage facility for rent, labor, and other charges, and for expenses reasonably incurred in the<br>sale or other disposition of the property under law. This lien is superior to other security interests<br>except those perfected before the date the lien attaches. The lien attaches upon default by the<br>occupant as stated in the notice of default served on the occupant as provided in this chapter.35-33-03. Denial of access - Disposal of property. If the occupant is in default, theowner may deny the occupant access to the leased space and enforce the lien by selling the<br>property stored in the leased space. Sale of the property may be by public or private proceeding<br>and may also be as a unit or in parcels. After the proceeding, the owner may dispose of any<br>property that was offered for sale but which remained unsold.35-33-04. Custody and control of property. Unless the rental agreement providesotherwise, until a sale under this chapter, the occupant is responsible for the care, custody, and<br>control of all property stored in the leased storage space, unless the owner secures the property<br>elsewhere during the sale proceedings.35-33-05. Notice of proceedings. Before conducting a sale, the owner shall:Page No. 11.Deliver in person or send by certified mail a notice of default to prior lienholders and<br>to the occupant at the occupant's last-known address. A notice under this section is<br>presumed delivered if it is deposited with the United States postal service and<br>properly addressed with postage prepaid. The notice must include:a.A statement that the contents of the occupant's leased space are subject to the<br>owner's lien and that the occupant is denied access to the property until the<br>owner's claim is satisfied;b.The address of the self-service storage facility, the number of the space where<br>the personal property is located, and the name of the occupant;c.A statement of the charges due, the date of default, and a demand for payment<br>of the charges due within a specified time, not less than ten days after the date<br>of notice;d.A statement in bold type providing that, unless the claim is paid within the time<br>stated, the contents of the occupant's leased space will be sold; ande.The name, address, and telephone number of the owner or a designated agent<br>whom the occupant may contact to respond to the notice.2.Publish, once a week for two consecutive weeks, with the first publication not more<br>than thirty days before the sale and the last publication at least seven days before<br>the sale, the time, place, and terms of the sale in a newspaper of general circulation<br>in the county where the self-service storage facility is located.35-33-06. Sale of property - Application of proceeds. At any time before the sale, theoccupant may pay the amount necessary to satisfy the lien and redeem the occupant's property.<br>If a sale is held, the owner shall satisfy the lien from the proceeds of the sale and hold the<br>balance, if any, for delivery on demand to the occupant or any other recorded lienholder for a<br>period of six months from the date of sale. The owner may retain any balance unclaimed after<br>the six-month period.35-33-07. Protection of purchaser in good faith. A purchaser in good faith of anyproperty sold under this chapter takes the property clear of any rights of persons against whom<br>the lien was valid, subject to the rights of prior lienholders.35-33-08.Liability of owner.If the owner complies with this chapter, the owner'sliability to the occupant is limited to the application of the proceeds received from the sale of the<br>property necessary to satisfy the lien. The owner's liability to other lienholders is limited to the<br>proceeds received from the sale of any property covered by the other lien less the amount<br>necessary to satisfy the owner's lien.35-33-09. Validity of certain rental agreements. Any rental agreement entered beforeAugust 1, 1997, remains valid and may be enforced or terminated in accordance with its terms or<br>as permitted by any other law of this state.35-33-10. Sale proceedings - Titled vehicles. The sale proceedings in this chapter aresufficient to provide the instruments or documents of authority necessary to obtain a transfer of<br>title to vehicles under section 39-05-19.Page No. 2Document Outlinechapter 35-33 self-service storage facility liens]]>