55-419 - Enforcement of lien.
§ 55-419. Enforcement of lien.
A. 1. If any occupant is in default under a rental agreement, the owner shallnotify the occupant of such default by regular mail at his last knownaddress. If such default is not cured within ten days after its occurrence,then the owner may proceed to enforce such lien by selling the contents ofthe occupant's unit at public auction, for cash, and apply the proceeds tosatisfaction of the lien, with the surplus, if any, to be disbursed ashereinafter provided. Before conducting such a public auction, the ownershall notify the occupant as prescribed in subsection C of this section andshall advertise the time, place, and terms thereof in such manner as to givepublicity thereto.
2. In the case of personal property having a fair market value in excess of$1,000, and against which a creditor has filed a financing statement in thename of the occupant at the State Corporation Commission or in the city orcounty where the self-service storage facility is located or in the city orcounty in Virginia shown as the last known address of the occupant, or ifsuch personal property is a watercraft required by the laws of Virginia to beregistered and the Department of Game and Inland Fisheries shows a lien onthe certificate of title, the owner shall notify the lienholder of record, bycertified mail, at the address on the financing statement or certificate oftitle, at least 10 days prior thereto of the time and place of the proposedpublic auction.
If the owner of the personal property cannot be ascertained, the name of"John Doe" shall be substituted in the proceedings hereunder and no writtennotice shall be required. Whenever a watercraft is sold hereunder, theDepartment of Game and Inland Fisheries shall issue a certificate of titleand registration to the purchaser thereof upon his application containing theserial or motor number of the watercraft purchased, together with anaffidavit by the lienholder, or by the person conducting the public auction,evidencing compliance with the provisions hereof.
B. Whenever the occupant is in default, the owner shall have the right todeny the occupant access to the leased space.
C. After the occupant has been in default for a period of ten days, andbefore the owner can sell the occupant's personal property in accordance withthis chapter, the owner shall send a further notice of default, by registeredor certified mail, postage prepaid, to the occupant at his last knownaddress. Such notice of default shall include:
1. An itemized statement of the owner's claim, indicating the charges due onthe date of the notice and the date when the charges became due;
2. A demand for payment of the charges due within a specified time not lessthan twenty days after the date of the notice;
3. A statement that the contents of the occupant's leased space are subjectto the owner's lien;
4. A conspicuous statement that unless the claim is paid within the timestated, the contents of the occupant's space will be sold at public auctionat a specified time and place; and
5. The name, street address, and telephone number of the owner or hisdesignated agent whom the occupant may contact to respond to the notice.
D. At any time prior to the public auction pursuant to this section, theoccupant may pay the amount necessary to satisfy the lien and thereby redeemthe personal property.
E. In the event of a public auction pursuant to this section, the owner maysatisfy his lien from the proceeds of the public auction, and shall hold thebalance, if any, for delivery on demand to the occupant or other lienholderreferred to in this chapter. However, the owner shall not be obligated tohold any balance for a lienholder of record notified pursuant to subdivisionA 2, or any other lien creditor, that fails to claim an interest in thebalance within thirty days of the public auction. So long as the ownercomplies with the provisions of this chapter, the owner's liability to theoccupant under this chapter shall be limited to the net proceeds receivedfrom the public auction of any personal property, and as to otherlienholders, shall be limited to the net proceeds received from the publicauction of any personal property covered by such superior lien.
F. Any public auction of the personal property shall be held at theself-service storage facility or at the nearest suitable place to where thepersonal property is held or stored. An advertisement shall be published in anewspaper of general circulation in the county, city or town in which thepublic auction is to be held at least once prior to the public auction. Theadvertisement must state (i) the fact that it is a public auction; (ii) thedate, time and location of the public auction; and (iii) form of payment.
G. A purchaser in good faith of any personal property sold or otherwisedisposed of pursuant to this chapter takes such property free and clear ofany rights of persons against whom the lien was valid.
H. Any notice made pursuant to this section shall be presumed delivered whenit is deposited with the United States Postal Service and properly addressedto the occupant's last known address with postage prepaid.
I. In the case of any motor vehicle, so long as the motor vehicle remainsstored within such leased space, the owner shall have a lien on such vehiclein accordance with § 46.2-644.01.
(1981, c. 627; 1984, cc. 717, 774; 2000, c. 655; 2009, c. 664.)