3905. Enforcement of lien
If an occupant defaults under a rental agreement, the owner may enforce the lien created in section 3904 of this title pursuant to this section.
(1) First notice of default. Not sooner than seven days after a default, the owner shall notify the occupant of the default by regular mail or electronic mail sent to the occupant’s last known address.
(2) Second notice of default.
(A) Not sooner than 14 days after mailing the first notice, the owner shall notify the occupant of the default by certified mail, first-class mail with a certificate of mailing, or electronic mail sent to the occupant’s last known address.
(B) If the owner sent the second notice of default to the occupant by electronic mail and does not receive a response, return receipt, or delivery confirmation from the same electronic mail address within two days, then before proceeding with a sale, the owner shall send the notice to the occupant either by certified mail or by first-class mail with a certificate of mailing.
(C) The second notice shall contain the following:
(i) An itemized statement of the owner’s claim showing the sum due at the time of the notice and the date when the sum became due.
(ii) A brief and general description of the personal property subject to the lien. An owner is not required to describe the specific contents of a storage space in a self-storage facility beyond stating that it is the contents of a specific storage space in a specific self-storage facility rented by a specific occupant.
(iii) A notice of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement.
(iv) A demand for payment within a specified time not less than 15 days after the mailing of the second notice of default.
(v) A conspicuous statement that unless the claim is paid in full within the time stated in the notice, the personal property will be advertised for sale and sold according to law.
(3) Advertisement. Except as otherwise provided in subdivision (C) or (D) of this subdivision (3):
(A) After the expiration of the time given in the second notice under subdivision (2) of this section, the owner shall publish an advertisement of the sale once a week for two consecutive weeks in the print or electronic version of a newspaper of general circulation where the self-storage facility is located.
(B) The advertisement shall contain the following:
(i) a brief and general description of the personal property as provided in subdivision (2)(C)(ii) of this section;
(ii) the address of the self-storage facility;
(iii) the number, if any, of the space where the personal property is located;
(iv) the name of the occupant; and
(v) the time, place, and manner of the sale.
(C) If there is no newspaper of general circulation where the self-storage facility is located, the owner shall post the advertisement at least 15 days before the date of the sale at the town hall where the self-storage facility is located in the same manner as the auction sales of real property are posted.
(D) As an alternative to the advertisement required in subdivisions (A)–(C) of this subdivision (3), an owner may advertise the sale of personal property in a commercially reasonable manner. For purposes of this subdivision (D), a manner of advertisement is commercially reasonable if three or more independent bidders attend or view the sale.
(4) Notice to other lienholders. Before the expiration of the time given in the second notice under subdivision (2) of this section, the owner shall determine whether the occupant owns any personal property subject to an active lien registered with the Vermont Secretary of State. If any such lien exists, the owner shall notify the lienholder by certified mail not less than 21 days prior to the sale of the property. The notice shall include the following:
(A) A statement describing the property to be sold. There shall be no requirement to describe the specific contents of a storage space in a self-storage facility beyond stating that it is the contents of a specific storage space in a specific self-storage facility rented by a specific occupant.
(B) A statement of the lienholder’s rights under this chapter.
(C) A statement of the time, place, and manner of the sale of the property.
(5) Delivery. For purposes of this chapter:
(A) notice by regular mail or first-class mail with a certificate of mailing is delivered when deposited with the U.S. Postal Service if the mail is properly addressed to the occupant’s last known address and postage is prepaid; and
(B) notice by electronic mail is delivered when properly addressed and sent to an occupant’s last known electronic mail address.
(6) Sale.
(A) An owner that fulfills the notice and advertisement requirements of this section may sell personal property stored in a storage space, subject to the following conditions:
(i) the sale occurs not sooner than 15 days after the first advertisement under subdivision (3) of this section;
(ii) the sale conforms to the terms of the notifications required under this section, or, if the sale will not or does not take place as provided in the notifications, then the owner makes subsequent notifications in the same manner as the original notifications consistent with this section;
(iii) subject to subdivision (C) of this subdivision (6), the owner does not knowingly sell personal information contained in the storage space;
(iv) the sale is held at the self-storage facility, at the nearest suitable place, or on a publicly accessible website;
(v) the owner does not purchase personal property at the sale; and
(vi) the sale is performed in a commercially reasonable manner.
(B) For purposes of subdivision (A)(vi) of this subdivision (6):
(i) A sale is commercially reasonable if it conforms to commercially reasonable practices within a recognized market for the goods or among dealers in the type of goods.
(ii) The sale of more goods than apparently necessary to satisfy an occupant’s obligation is not commercially reasonable unless necessary due to the nature of the goods being sold or the manner in which they are customarily sold.
(iii) The fact that an owner could obtain a better price by sale at a different time or by a different method is not of itself sufficient to establish that the sale was not commercially reasonable.
(C)(i) If an owner has a reasonable belief that the storage space contains the personal information of an occupant or clients, customers, or others with whom the occupant does business, the owner shall not hold a lien sale of the personal information and may destroy the personal information without liability to any person.
(ii) Before the purchaser takes possession of any personal property sold, an owner shall provide notice and shall require written acknowledgment from the purchaser that, if any of the contents contain personal information, the purchaser shall return the personal information to the owner, which the owner may destroy without liability to any person.
(D) Except as provided in subdivision (7) of this section, an owner shall conduct a sale or disposition of a motor vehicle pursuant to 23 V.S.A. chapter 21 and a sale or disposition of a vessel, snowmobile, or all-terrain vehicle pursuant to 23 V.S.A. chapter 36.
(7) Towing.
(A) If rent, charges, fees, or expenses remain unpaid after 51 days, an owner may have a vehicle, vessel, snowmobile, trailer, or all-terrain vehicle towed away by a towing company.
(B) Not later than five days after having personal property towed pursuant to this subdivision (7), an owner shall notify the occupant by regular mail or electronic mail at the occupant’s last known address and shall include the name, address, and telephone number of the towing company.
(C) An owner has no liability to any person for having property towed or for damage to the property after the towing company takes possession of the property.
(8) Right of satisfaction.
(A) Before a sale of personal property pursuant to this chapter, the occupant may redeem the property by paying the amount necessary to satisfy the lien and the reasonable expenses incurred under this section.
(B) Upon receipt of payment, the owner shall return the personal property and thereafter is not liable to any person with respect to the personal property.
(9) Proceeds in excess of lien amount.
(A) An owner that sells property pursuant to this section:
(i) may satisfy the owner’s lien from the proceeds of the sale; and
(ii) shall hold the balance, if any, for delivery on demand to the occupant.
(B) If the occupant does not claim the balance of the proceeds, the owner shall deliver the balance without interest to the Treasurer of the State of Vermont in accordance with 27 V.S.A. chapter 14.
(10) Rights of other lienholders. The holder of any perfected lien or security interest on personal property stored in the storage unit and registered with the Vermont Secretary of State may take possession of its liened property at any time prior to sale or other disposition.
(11) Rights of purchasers. A purchaser in good faith of the personal property sold to satisfy a lien takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this chapter.
(12) Disposal of personal property. If an owner complies with the requirements of this section and a qualified buyer does not purchase the property offered for sale, the owner may dispose of the property without liability.
(13) Liability. An owner that has complied with the applicable provisions of this chapter is not liable to an occupant, lienholder, or any other person.
Added 2007, No. 183 (Adj. Sess.), § 2, eff. Jan. 1, 2009; amended 2021, No. 168 (Adj. Sess.), § 1, eff. July 1, 2022.
