70-6-607. Renter default -- personal property sale. (1) If a renter is in default for a period of more than 60 days, the operator may enforce the lien provided in 70-6-605 by selling the renter's stored personal property at a commercially reasonable sale. Personal property may be sold:

(a) as a unit or in parcels; or

(b) by way of one or more contracts.

(2) The operator may otherwise dispose of property that has no commercial value.

(3) Before conducting a sale under this section, the operator shall:

(a) at least 30 days before the sale, send notice of default to the renter. The notice of default must include:

(i) a statement that the contents of the renter's leased space are subject to the operator's lien;

(ii) a statement of the operator's claim, indicating the charges due on the date of the notice and that additional charges shall continue to accrue and become due;

(iii) a demand for payment of the charges due and a deadline for payment;

(iv) a statement that unless the claim is paid before the deadline, the contents of the renter's leased space will be sold or otherwise disposed of after a specified time; and

(v) the name, street address, and telephone number of the operator or a designated agent that the renter may contact to respond to the notice.

(b) at least 7 days before the sale, notify by verified mail or electronic mail, if provided by the renter, the date, time, and location of the sale;

(c) at least 7 days before the sale, advertise the time, place, and terms of the sale in a newspaper of general circulation in the county where the sale is to be held. Alternatively, the operator may advertise the sale in any other commercially reasonable manner. The manner of advertisement is commercially reasonable if the sale is attended or viewed by at least three persons who appear personally or online, by telephone, or by any other method at the time and place advertised.

(4) If the personal property subject to the operator's lien is titled, registered, or owned by public record and if charges or rent remain unpaid for 60 days, the operator may have the personal property removed from the self-storage facility by a professional transfer or tow truck company, including but not limited to motor vehicles, watercraft, aircraft, and trailers. The operator is not liable for any damage to personal property under this subsection after the professional transfer or tow truck company takes possession of the property.

(5) At any time before a sale is held under this section or before a vehicle, watercraft, aircraft, or trailer is removed under this section, the renter may pay the amount necessary to satisfy the lien and access the renter's personal property.

(6) If a sale is held under this section, the operator shall:

(a) satisfy the lien with the proceeds of the sale; and

(b) send a check of the net proceeds to the renter at the renter's last-known address or to any other recorded lienholder. The operator is not liable to any party for excess proceeds paid to the renter. If the check has not been cashed after 1 year, any remaining proceeds are considered abandoned property and must be reported and paid to the department of revenue in accordance with the Uniform Unclaimed Property Act in Title 70, chapter 9, part 8.

(7) A purchaser in good faith of any personal property sold pursuant to this section to satisfy the lien granted in 70-6-605 takes the property free and clear of any rights of persons against whom the lien was valid, despite noncompliance by the operator with the requirements of this part.

(8) Notices to the renter under subsection (3) must be sent to the renter's last-known address by verified mail or electronic mail, if provided by the renter. Notices sent by verified mail are considered delivered when postmarked and properly addressed with postage paid. Notices sent by electronic mail are considered delivered on the date the electronic mail is sent to the last-known address provided by the renter.

(9) If the operator complies with the requirements of this section, the operator's liability:

(a) to the renter is limited to the net proceeds received from the sale of the renter's personal property until the proceeds escheat to the state according to subsection (6)(b); and

(b) to other lienholders is limited to the net proceeds received from the sale of any personal property covered by the other lienholder's lien property until the proceeds escheat to the state according to subsection (6)(b).

History: En. Sec. 7, Ch. 222, L. 2017; amd. Sec. 5, Ch. 67, L. 2019.