Lien for labor on, materials for, storage of, towing of, or repair of
vehicle; sale of vehicle to satisfy lien
Sec. 15. (a) An individual, a firm, a limited liability company, or
a corporation that performs labor, furnishes materials or storage, or
does repair work on a motor vehicle, trailer, semitrailer, or
recreational vehicle at the request of the person who owns the
vehicle has a lien on the vehicle to the reasonable value of the
charges for the labor, materials, storage, or repairs.
(b) An individual, a firm, a partnership, a limited liability
company, or a corporation that provides towing services for a motor
vehicle, trailer, semitrailer, or recreational vehicle at the request of:
(1) the person who owns the motor vehicle, trailer, semitrailer,
or recreational vehicle; or
(2) an individual, a firm, a partnership, a limited liability
company, or a corporation on whose property an abandoned
motor vehicle, trailer, semitrailer, or recreational vehicle is
located;
has a lien on the vehicle for the reasonable value of the charges for
the towing services and other related costs. An individual, a firm, a
partnership, a limited liability company, or a corporation that obtains
a lien for an abandoned vehicle under subdivision (2) must comply
with IC 9-22-1-4, IC 9-22-1-16, IC 9-22-1-17, and IC 9-22-1-19.
(c) If:
(1) the charges made under subsection (a) or (b) are not paid;
and
(2) the motor vehicle, trailer, semitrailer, or recreational vehicle
is not claimed;
within thirty (30) days from the date on which the vehicle was left in
or came into the possession of the individual, firm, limited liability
company, or corporation for repairs, storage, towing, or the
furnishing of materials, the individual, firm, limited liability
company, or corporation may advertise the vehicle for sale. The
vehicle may not be sold before fifteen (15) days after the date the
advertisement required by subsection (d) has been placed or after
notice required by subsection (e) has been sent, whichever is later.
(d) Before a vehicle may be sold under subsection (c), an
advertisement must be placed in a newspaper of general circulation
printed in the English language in the city or town in which the
lienholder's place of business is located. The advertisement must
contain at least the following information:
(1) A description of the vehicle, including make, type, and
manufacturer's identification number.
(2) The amount of the unpaid charges.
(3) The time, place, and date of the sale.
(e) In addition to the advertisement required under subsection (d),
the person who holds the mechanic's lien must:
(1) notify the person who owns the vehicle and any other person
who holds a lien of record at the person's last known address by
certified mail, return receipt requested; or
(2) if the vehicle is an abandoned motor vehicle, provide notice
as required under subdivision (1) if the location of the owner of
the motor vehicle or a lienholder of record is determined by the
bureau in a search under IC 9-22-1-20;
that the vehicle will be sold at public auction on a specified date to
satisfy the lien imposed by this section.
(f) A person who holds a lien of record on a vehicle subject to sale
under this section may pay the storage, repair, towing, or service
charges due. If the person who holds the lien of record elects to pay
the charges due, the person is entitled to possession of the vehicle
and becomes the holder of the mechanic's lien imposed by this
section.
(g) If the person who owns a vehicle subject to sale under this
section does not claim the vehicle and satisfy the lien on the vehicle,
the vehicle may be sold at public auction to the highest and best
bidder for cash. A person who holds a mechanic's lien under this
section may purchase a vehicle subject to sale under this section.
(h) A person who holds a mechanic's lien under this section may
deduct and retain the amount of the lien and the cost of the
advertisement required under subsection (d) from the purchase price
received for a vehicle sold under this section. After deducting from
the purchase price the amount of the lien and the cost of the
advertisement, the person shall pay the surplus of the purchase price
to the person who owns the vehicle if the person's address or
whereabouts is known. If the address or whereabouts of the person
who owns the vehicle is not known, the surplus of the purchase price
shall be paid over to the clerk of the circuit court of the county in
which the person who holds the mechanic's lien has a place of
business for the use and benefit of the person who owns the vehicle.
(i) A person who holds a mechanic's lien under this section shall
execute and deliver to the purchaser of a vehicle under this section
a sales certificate in the form designated by the bureau, setting forth
the following information:
(1) The facts of the sale.
(2) The vehicle identification number.
(3) The certificate of title if available.
(4) A certificate from the newspaper showing that the
advertisement was made as required under subsection (d).
Whenever the bureau receives from the purchaser an application for
certificate of title accompanied by these items, the bureau shall issue
a certificate of title for the vehicle under IC 9-17.
As added by P.L.2-1991, SEC.10. Amended by P.L.8-1993, SEC.175;
P.L.104-2005, SEC.9.
Last modified: May 27, 2006