Bill Text: NC H620 | 2013-2014 | Regular Session | Amended
Bill Title: Streamline Sales for Mechanics Liens
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2013-05-13 - Re-ref Com On Judiciary Subcommittee A [H620 Detail]
Download: North_Carolina-2013-H620-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 1
HOUSE BILL 620
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Short Title: Streamline Sales for Mechanics Liens. |
(Public) |
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Sponsors: |
Representative McManus (Primary Sponsor). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Transportation, if favorable, Judiciary Subcommittee A. |
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April 10, 2013
A BILL TO BE ENTITLED
AN ACT to streamline the process of selling motor vehicles that are subject to a mechanics lien.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 44A‑4 reads as rewritten:
"§ 44A‑4. Enforcement of lien by sale.
…
(b) Notice and Hearings. –
(1) If the property upon which the lien is claimed is a
motor vehicle that is required to be registered, the lienor following the
expiration of the relevant time period provided by subsection (a) shall give
notice to the Division of Motor Vehicles that a lien is asserted and sale is
proposed and shall remit to the Division a fee of ten dollars ($10.00). The
Division of Motor Vehicles shall issue notice by certified mail, return receipt
requested, to the person having legal title to the property, if reasonably
ascertainable, to the person with whom the lienor dealt if different, and to
each secured party and other person claiming an interest in the property who is
actually known to the Division or who can be reasonably ascertained. The notice
shall state that a lien has been asserted against specific property and shall
identify the lienor, the date that the lien arose, the general nature of the
services performed and materials used or sold for which the lien is asserted,
the amount of the lien, and that the lienor intends to sell the property in
satisfaction of the lien. The notice shall inform the recipient that the
recipient has the right to a judicial hearing at which time a determination
will be made as to the validity of the lien prior to a sale taking place.place,
except that the notice shall further inform the recipient that the property may
be sold pursuant to this section without a judicial hearing if the certified
mail notice is returned as undeliverable or if the person having legal title to
the vehicle cannot reasonably be ascertained. The notice shall further
state that the recipient has a period of 10 days from the date of receipt in
which to notify the Division by certified mail, return receipt requested, that
a hearing is desired and that if the recipient wishes to contest the sale of
his property pursuant to such lien, the recipient should notify the Division
that a hearing is desired. The notice shall state the required information in
simplified terms and shall contain a form whereby the recipient may notify the
Division that a hearing is desired by the return of such form to the Division.
The Division shall notify the lienor whether such notice is timely received by
the Division. In lieu of the notice by the lienor to the Division and the
notices issued by the Division described above, the lienor may issue notice on
a form approved by the Division pursuant to the notice requirements above. If
notice is issued by the lienor, the recipient shall return the form requesting
a hearing to the lienor, and not the Division, within 10 days from the date the
recipient receives the notice if a judicial hearing is requested. If the
certified mail notice has been returned as undeliverable and the notice of a
right to a judicial hearing has been given to the owner of the motor vehicle in
accordance with G.S. 20‑28.4, no further notice is required. Failure
of the recipient to notify the Division or lienor, as specified in the notice,
within 10 days of the receipt of such notice that a hearing is desired shall be
deemed a waiver of the right to a hearing prior to the sale of the property
against which the lien is asserted, and the lienor may proceed to enforce the
lien by public or private sale as provided in this section and the Division shall
transfer title to the property pursuant to such sale. If the Division or
lienor, as specified in the notice, is notified within the 10‑day period
provided above that a hearing is desired prior to sale, the lien may be
enforced by sale as provided in this section and the Division will transfer
title only pursuant to the order of a court of competent jurisdiction.
If the certified mail
notice has been returned as undeliverable, or if the name of the person having
legal title to the vehicle cannot reasonably be ascertained and the fair
market value of the vehicle is less than eight hundred dollars ($800.00),ascertained,
the lienor may institute a special proceeding in the county where the
vehicle is being held, for authorization to sell that vehicle. sell the
vehicle in accordance with this section and no hearing or judicial action shall
be required. Market value shall be determined by the schedule of values
adopted by the Commissioner under G.S. 105‑187.3. Upon
completion, any excess proceeds of the sale shall be paid immediately to the
Treasurer for disposition pursuant to Chapter 116B of the General Statutes and
the lienor shall notify the Division of the sale. Upon receipt of this notice,
the Division shall transfer title accordingly.
In such a proceeding
a lienor may include more than one vehicle, but the proceeds of the sale of
each shall be subject only to valid claims against that vehicle, and any excess
proceeds of the sale shall be paid immediately to the Treasurer for disposition
pursuant to Chapter 116B of the General Statutes.
The application to
the clerk in such a special proceeding shall contain the notice of sale
information set out in subsection (f) hereof. If the application is in proper
form the clerk shall enter an order authorizing the sale on a date not less
than 14 days therefrom, and the lienor shall cause the application and order to
be sent immediately by first‑class mail pursuant to G.S. 1A‑1,
Rule 5, to each person to whom notice was mailed pursuant to this subsection.
Following the authorized sale the lienor shall file with the clerk a report in
the form of an affidavit, stating that the lienor has complied with the public
or private sale provisions of G.S. 44A‑4, the name, address, and bid
of the high bidder or person buying at a private sale, and a statement of the
disposition of the sale proceeds. The clerk then shall enter an order directing
the Division to transfer title accordingly.
If prior to the sale
the owner or legal possessor contests the sale or lien in a writing filed with
the clerk, the proceeding shall be handled in accordance with G.S. 1‑301.2.
…."
SECTION 2. This act becomes effective October 1, 2013, and applies to liens created on or after that date.
