(a) A person engaged in the business of towing motor vehicles, who tows, transports, or stores a motor vehicle, has a possessory lien on the vehicle. This lien attaches when the person acts under a contract with the owner or at the direction of a public officer acting lawfully or a person entitled to possession of the property upon which the motor vehicle is parked without consent. The lien remains in effect while the motor vehicle is in the possession of the person, and the vehicle may be sold, as provided in (c) of this section, to pay the charges for towing, transportation or storage.
(b) A lien under this section is limited to towing and storage charges and associated mailing fees. Unless a vehicle has already been reclaimed by the owner, the person possessing the vehicle under this section shall notify the registered owner and primary lienholder, if any, of the towing, transporting, or storage of the vehicle, by certified letter, return receipt requested, mailed to the registered owner and primary lienholder, if any, within seven working days after the initial towing, transporting, or storage of the vehicle. The letter shall be sent to the addresses of record of the registered owner and primary lienholder, if any, on file with the department or the corresponding office in another jurisdiction in which the title to the motor vehicle and the lien on it are recorded. Storage charges cease to be part of the lien after 60 days unless the registered owner or primary lienholder, if any, has been given actual notice of the possessory lien within that time or unless the certified letter has been mailed within the time required in this subsection.
(c) If the motor vehicle remains unclaimed for a period of 30 days in the possession of the person who performed the towing, transportation or storage, it shall be sold on giving 20 days notice of the sale. The notice shall be delivered to the proper officer and personally served on the registered owner and all lienholders, if any, of the motor vehicle in the same manner as provided by law for service of summons. If either of these persons cannot be located and served personally, notice of the sale shall be forwarded to the registered owner and all lienholders, if any, at their last known address by certified mail, return receipt requested. This notice must contain a description of the motor vehicle, including its registration plate number and vehicle identification number, together with the time and place of sale, a statement of the amount due, and the name and address of the person to whom the charges are due.
(d) The money realized from a sale made under this section shall be applied first to the payment of costs and expenses of the sale and secondly to the lawful charges of the person having a lien on the motor vehicle under this section. Remaining proceeds from the sale shall be retained by the department to be distributed to the registered and legal owner or lienholder entitled to the remaining proceeds. A purchaser in good faith of a titled motor vehicle sold under this section takes the motor vehicle free of any rights of prior lien.
Section: Previous 28.10.495 28.10.500 28.10.501 28.10.502 28.10.505 28.10.510 28.10.550 28.10.560 28.10.580 28.10.590 28.10.661 NextLast modified: November 15, 2016