Utah Storage Law

Utah Storage Law
UT Self and Mini Storage Lien Laws

SB 182 in effect as of March 23, 2013

S.B. 182 Enrolled

             1     

STORAGE UNIT AMENDMENTS


             2     

2013 GENERAL SESSION


             3     

STATE OF UTAH


             4     

Chief Sponsor: J. Stuart Adams


             5     

House Sponsor: Ryan D. Wilcox


             6      
             7      LONG TITLE
             8      General Description:
             9          This bill amends the enforcement procedures that apply to liens described in Title 38,
             10      Chapter 8, Self-Service Storage Facilities, against property stored in self-service storage
             11      facilities.
             12      Highlighted Provisions:
             13          This bill:
             14          .    defines terms;
             15          .    allows an owner of a self-service storage facility to send notices related to the
             16      enforcement of a lien described in Title 38, Chapter 8, Self-Service Storage
             17      Facilities, by email;
             18          .    specifies the maximum amount a newspaper can charge an owner to advertise a sale
             19      under this chapter;
             20          .    allows an owner to have a vehicle towed from the self-storage facility if the
             21      occupant has been in default for a continuous 60-day period; and
             22          .    makes technical changes.
             23      Money Appropriated in this Bill:
             24          None
             25      Other Special Clauses:
             26          None
             27      Utah Code Sections Affected:
             28      AMENDS:
             29          38-8-1, as last amended by Laws of Utah 2009, Chapter 356

 


             30          38-8-2, as last amended by Laws of Utah 2000, Chapter 252
             31          38-8-3, as last amended by Laws of Utah 2011, Chapter 102
             32          38-8-4, as enacted by Laws of Utah 1981, Chapter 171
             33      ENACTS:
             34          38-8-3.5, Utah Code Annotated 1953
             35      
             36      Be it enacted by the Legislature of the state of Utah:
             37          Section 1. Section 38-8-1 is amended to read:
             38           38-8-1. Definitions.
             39          As used in this chapter:
             40          (1) "Certified mail" means:
             41          (a) a method of mailing that is offered by the United States Postal Service and provides
             42      evidence of mailing; or
             43          (b) a method of mailing that is accompanied by a certificate of mailing executed by the
             44      individual who caused the notice to be mailed.
             45          [(1)(2) "Default" means the failure to perform in a timely manner any obligation or
             46      duty [set forthdescribed in this chapter or the rental agreement.
             47          (3) "Email" means an electronic message or an executable program or computer file
             48      that contains an image of a message that is transmitted between two or more computers or
             49      electronic terminals, including electronic messages that are transmitted within or between
             50      computer networks.
             51          [(2)(4) "Last known address" means [thatthe postal address provided by [thean
             52      occupant in [the latesta rental agreement or [the], if the occupant provides a subsequent
             53      written notice of a change of address, the postal address provided [by the occupant in a
             54      subsequentin the written notice of a change of address.
             55          (5) "Last known email address" means the email address provided by an occupant in a
             56      rental agreement or, if the occupant provides a subsequent written notice of a change of
             57      address, the email address provided in the written notice of a change of address.

 


             58          [(3)(6) "Occupant" means a person, or [histhe person's sublessee, successor, or
             59      assignee, entitled to the use of [thea storage space at a self-service storage facility under a
             60      rental agreement, to the exclusion of others.
             61          [(4)(7) "Owner" means:
             62          (a) the owner, operator, lessor, or sublessor of a self-service storage facility[, his];
             63          (b) an agent[,of a person described in Subsection (11)(a); or
             64          (c) any other person authorized by [hima person described in Subsection (11)(a) to
             65      manage the facility or to receive rent from an occupant under a rental agreement.
             66          [(5)(8) "Personal property" means movable property not affixed to land and includes[,
             67      but is not limited to,] goods, merchandise, and household items.
             68          [(6)(9) "Rental agreement" means any written agreement or lease [whichthat
             69      establishes or modifies the terms, conditions, rules, or any other provisions [concerning]
             70      relating to the use and occupancy of a unit or space at a self-service storage facility [and which
             71      contains a notice stating that all articles stored under the terms of the agreement will be sold or
             72      otherwise disposed of if no payment has been received for a continuous 30-day period. The
             73      agreement shall contain a provision directing the occupant to disclose any lienholders with an
             74      interest in property that is or will be stored in the self-service storage facility].
             75          [(7)(10) (a) "Self-service storage facility" means [any] real property designed and
             76      used for the purpose of renting or leasing individual storage space to occupants who [are to]
             77      have access to the facility for the purpose of storing [and removing] personal property. [No
             78      occupant may use a self-service storage facility for residential purposes. The owner of a
             79      self-service]
             80          (b) "Self-service storage facility" [isdoes not include:
             81          (i) a warehouse [as useddescribed in Section 70A-7a-102 [. If an owner issues any];
             82          (ii) real property used for residential purposes; or
             83          (iii) a facility that issues a warehouse receipt, bill of lading, or other document of title
             84      for the personal property stored[, the owner and the occupant are subject to the provisions of
             85      the Uniform Commercial Code, and the provisions of this chapter do not applyat the facility.

 


             86          (11) "Vehicle" means personal property required to be registered with the Motor
             87      Vehicle Division pursuant to Title 41, Chapter 1a, Part 2, Registration, Title 41, Chapter 22,
             88      Off-Highway Vehicles, or Title 73, Chapter 18, State Boating Act.
             89          Section 2. Section 38-8-2 is amended to read:
             90           38-8-2. Lien against stored property -- Attachment and duration -- Search for
             91      financing statement prerequisite to enforcement of lien.
             92          (1) [WhereWhen an owner and an occupant enter into a rental agreement, [as defined
             93      in Subsection 38-8-1 (6), is entered into between the owner and the occupant,] the owner [of the
             94      self-service storage facility] and the owner's heirs, executors, administrators, successors, and
             95      assigns have a lien upon all personal property located at the self-service storage facility for rent,
             96      labor, or other charges, present or future, in relation to the personal property and for expenses
             97      necessary for its preservation or expenses reasonably incurred in its sale [or other disposition]
             98      under this chapter.
             99          (2) The lien described in Subsection (1) attaches [as ofon the date the personal
             100      property is brought to the self-service storage facility and continues so long as the owner
             101      retains possession and until any default is corrected[,] or a sale pursuant to a default is
             102      conducted[, or the property is otherwise disposed of] to satisfy the lien.
             103          (3) A rental agreement shall state that:
             104          (a) an owner is entitled to sell all personal property stored at the self-service storage
             105      facility pursuant to the rental agreement if the occupant is in default for a continuous 30-day
             106      period; and
             107          (b) the occupant shall disclose to the owner any lienholders that have an interest in the
             108      property that will be stored at the self-service storage facility.
             109          (4) If a rental agreement states a maximum, aggregate value of the personal property
             110      that may be stored at the occupant's storage space, the occupant may not assert that the value of
             111      the personal property actually stored at the occupant's storage space exceeds the maximum
             112      amount stated in the rental agreement.
             113          [(3)(5) (a) Before [takingan owner takes enforcement action under Section 38-8-3 ,

 


             114      the owner shall determine if a financing statement filed in accordance with Title 70A, Chapter
             115      9a, Part 5, Filing, has been filed with the Division of Corporations and Commercial Code
             116      concerning the property to be sold [or otherwise disposed of].
             117          (b) A security interest evidenced by a financing statement filed in accordance with
             118      Title 70A, Chapter 9a, Part 5, Filing, has priority over the lien provided by this section.
             119          Section 3. Section 38-8-3 is amended to read:
             120           38-8-3. Enforcement of lien -- Notice requirements -- Sale procedure and effect.
             121          [A claim of an owner which has become due against an occupant and which is secured
             122      by the owner's lien may be satisfied as follows:]
             123          [(1) No enforcement action may be taken by the owner until the occupant has been in
             124      default continuously for a period of 30 days.]
             125          [(2) After the occupant has been in default continuously for a period of 30 days, the
             126      owner may begin enforcement action if the occupant has been given notice in writing. The
             127      notice shall be delivered in person or sent by certified mail to the last known address of the
             128      occupant. If the property to be sold in an enforcement action includes a vehicle, vessel, or
             129      outboard motor, as those terms are defined in Section 41-1a-102 , or an aircraft as defined in
             130      Section 72-10-102 , the notice shall also be delivered to the last known address of the registered
             131      owner and any lienholder, as disclosed by the records of the Motor Vehicle Division. A copy
             132      of the notice shall, at the same time, be sent to the sheriff of the county where the self-service
             133      storage facility is located. Any lienholder with an interest in the property to be sold or
             134      otherwise disposed of, of whom the owner has knowledge either through the disclosure
             135      provision on the rental agreement or through the existence of a validly filed and perfected
             136      UCC-1 financing statement with the Division of Corporations and Commercial Code, or
             137      through other written notification, shall be included in the notice process as set forth in this
             138      section.]
             139          (1) An owner may enforce a lien described in Section 38-8-2 against an occupant if:
             140          (a) the occupant is in default for a continuous 30-day period; and
             141          (b) the owner provides written notice of the owner's intent to enforce the lien, in

 


             142      accordance with the requirements of this section, to:
             143          (i) the occupant;
             144          (ii) each lienholder disclosed by the occupant under Subsection 38-8-2 (3)(b);
             145          (iii) each person that has filed a valid financing statement with the Division of
             146      Corporations and Commercial Code; and
             147          (iv) each person identified as a lienholder in the records of the Motor Vehicle Division.
             148          (2) An owner shall provide the written notice described in Subsection (1)(b):
             149          (a) in person;
             150          (b) by certified mail, to the person's last known address; or
             151          (c) subject to Subsection (3), by email, to the person's last know email address.
             152          (3) If an owner sends a notice described in Subsection (2) by email and does not
             153      receive a response, return receipt, or delivery confirmation from the email address to which the
             154      notice was sent within three business days after the day on which the notice was sent, the
             155      owner shall deliver the notice in person or by certified mail to the person's last known address.
             156          [(3)(4) [ThisA written notice described in Subsection (1)(b) shall include:
             157          (a) an itemized statement of the owner's claim showing the sum due at the time of the
             158      notice and the date when the sum became due;
             159          (b) a brief [and general] description of the personal property subject to the lien[, which
             160      description shall be reasonably adequate to permit the person notified to identify the property;
             161      except that any container including, but not limited to, a trunk, valise, or box that isthat
             162      permits the person to identify the property, unless the property is locked, fastened, sealed, [or]
             163      tied, or otherwise stored in a manner [which deters immediate access to its contents may be
             164      described as such without describing its contentsthat prevents immediate identification of the
             165      property;
             166          (c) if permitted by the terms of the rental agreement, a [notification of denial ofnotice
             167      that the occupant may not access [to] the occupant's personal property[, if such denial is
             168      permitted under the terms of the rental agreement, which notification shall provideuntil the
             169      occupant complies with the requirements described in Subsection (9);

 


             170          (d) the name, street address, and telephone number of the owner [or his designated
             171      agent whomor the individual the occupant may contact to respond to the notification;
             172          [(d)(e) a demand for payment within a specified time not less than 15 days after
             173      [delivery of the noticethe day on which the notice is delivered; and
             174          [(e)(f) a conspicuous statement that, unless the claim is paid within the time stated in
             175      the notice, the personal property will be advertised for sale [or other disposition] and will be
             176      sold [or otherwise disposed of] at a specified time and place.
             177          [(4)(5) [AnyA notice [made] under this section shall be presumed delivered when it
             178      is deposited with the United States Postal Service and properly addressed with postage prepaid.
             179          [(5)(6) (a) After the expiration of the time given in the notice, the owner shall publish
             180      an advertisement of the sale [or other disposition shall be published:(i) (A) if there is a
             181      newspaper of general circulation in the county where the self-service storage facility is
             182      located,of the personal property subject to the lien once [a week for two consecutive weeks]
             183      in a newspaper of general circulation in [thatthe county[; orwhere the self-service storage
             184      facility is located.
             185          [(B) if there is not a newspaper of general circulation in the county where the
             186      self-service storage facility is located, by posting the advertisement of sale or other disposition
             187      in not less than six conspicuous places in the neighborhood where the self-service storage
             188      facility is located; and]
             189          [(ii) in accordance with Section 45-1-101 for two weeks.]
             190          (b) [TheAn advertisement described in Subsection [(5)(a)(6)(a) shall include:
             191          (i) [a brief and general description of the personal property reasonably adequate to
             192      permit its identification as provided for in Subsection (3)(b);] the address of the self-service
             193      storage facility and the number, if any, of the space where the personal property is located;
             194      [and]
             195          (ii) the name of the occupant [and his last known address]; and
             196          [(ii)(iii) the time, place, and manner of the sale [or other disposition, which sale or
             197      other disposition], which shall take place not sooner than 15 days after the [first publication]

 


             198      day on which the sale is advertised under Subsection (6)(a).
             199          [(6)(7) [AnyA sale [or other disposition] of the personal property shall conform to
             200      the terms of the notice provided for in this section.
             201          [(7)(8) [AnyA sale [or other disposition] of the personal property shall be held at the
             202      self-service storage facility [or], at the nearest suitable place to where the personal property is
             203      held or stored, or online.
             204          [(8)(9) Before [anya sale [or other disposition] of personal property under this
             205      section, the occupant may pay the amount necessary to satisfy the lien and the reasonable
             206      expenses incurred under this section and thereby redeem the personal property; upon receipt of
             207      this payment, the owner shall return the personal property, and thereafter the owner shall have
             208      no liability to any person with respect to that personal property.
             209          [(9)(10) A purchaser in good faith of the personal property sold to satisfy a lien as
             210      provided for in this chapter takes the property free of any rights of persons against whom the
             211      lien was valid and free of any rights of a secured creditor, despite noncompliance by the owner
             212      with the requirements of this section.
             213          [(10)(11) In the event of a sale under this section, the owner may satisfy [histhe lien
             214      for the proceeds of the sale, subject to the rights of any prior lienholder; the lien rights of the
             215      prior lienholder are automatically transferred to the proceeds of the sale; if the sale is made in
             216      good faith and is conducted in a reasonable manner, the owner shall not be subject to any
             217      surcharge for a deficiency in the amount of a prior secured lien, but shall hold the balance, if
             218      any, for delivery to the occupant, lienholder, or other person in interest; if the occupant,
             219      lienholder, or other person in interest does not claim the balance of the proceeds within one
             220      year of the date of sale, it shall become the property of the Utah state treasurer as unclaimed
             221      property with no further claim against the owner.
             222          [(11)(12) If the requirements of this chapter are not satisfied, if the sale of the
             223      personal property is not in conformity with the notice of sale, or if there is a willful violation of
             224      this chapter, nothing in this section affects the rights and liabilities of the owner, occupant, or
             225      any other person.

 


             226          Section 4. Section 38-8-3.5 is enacted to read:
             227          38-8-3.5. Right to tow certain vehicles subject to lien.
             228          (1) If the property subject to a lien described in Section 38-3-2 is a vehicle, the
             229      occupant is in default for a continuous 60-day period, and the owner chose not to sell the
             230      vehicle under Section 38-8-3 , the owner may have the vehicle towed from the self-storage
             231      facility by an independent towing carrier that is certified by the Department of Transportation
             232      as described in Section 72-9-602 .
             233          (2) Within one day after the day on which a vehicle is towed under Subsection (1), the
             234      owner shall send written notice by certified mail, postage prepaid, to the occupant's last known
             235      address that states:
             236          (a) the date the vehicle was towed; and
             237          (b) the address and telephone number of the person that towed the vehicle.
             238          (3) An owner that has a vehicle towed under Subsection (1) is not liable for any
             239      damage that occurs to the vehicle after the independent towing carrier takes possession of the
             240      vehicle.
             241          Section 5. Section 38-8-4 is amended to read:
             242           38-8-4. Posting of notice.
             243          Each owner acting under this chapter shall keep posted in a prominent place in [histhe
             244      owner's office at all times a notice [whichthat reads as follows:
             245          "All articles stored [byunder a rental agreement, [andfor which charges have not
             246      [having] been paid for 30 days, will be sold [or otherwise disposed of] to pay charges. If this
             247      business does not sell a vehicle stored under a rental agreement, it will be towed from the
             248      self-storage facility after 60 days of nonpayment."

 

 


Utah Code / Constitution

Title 38Liens 

Chapter 8Self-Service Storage Facilities

 

Section 1Definitions.

Section 2Lien against stored property -- Attachment and duration -- Search for financing statement prerequisite to enforcement of lien.

Section 3Enforcement of lien -- Notice requirements -- Sale procedure and effect.

Section 4Posting of notice.

Section 5Other liens unaffected.

 38-8-1.   Definitions.

     As used in this chapter:

     (1) "Default" means the failure to perform in a timely manner any obligation or duty set forth in this chapter or the rental agreement.

     (2) "Last known address" means that address provided by the occupant in the latest rental agreement or the address provided by the occupant in a subsequent written notice of a change of address.

     (3) "Occupant" means a person, or his sublessee, successor, or assignee, entitled to the use of the storage space at a self-service storage facility under a rental agreement, to the exclusion of others.

     (4) "Owner" means the owner, operator, lessor, or sublessor of a self-service storage facility, his agent, or any other person authorized by him to manage the facility or to receive rent from an occupant under a rental agreement.

     (5) "Personal property" means movable property not affixed to land and includes, but is not limited to, goods, merchandise, and household items.

     (6) "Rental agreement" means any written agreement or lease which establishes or modifies the terms, conditions, rules, or any other provisions concerning the use and occupancy at a self-service storage facility and which contains a notice stating that all articles stored under the terms of the agreement will be sold or otherwise disposed of if no payment has been received for a continuous 30-day period. The agreement shall contain a provision directing the occupant to disclose any lienholders with an interest in property that is or will be stored in the self-service storage facility.

     (7) "Self-service storage facility" means any real property designed and used for the purpose of renting or leasing individual storage space to occupants who are to have access to the facility for the purpose of storing and removing personal property. No occupant may use a self-service storage facility for residential purposes. The owner of a self-service storage facility is not a warehouse as used in Section 70A-7a-102. If an owner issues any warehouse receipt, bill of lading, or other document of title for the personal property stored, the owner and the occupant are subject to the provisions of the Uniform Commercial Code, and the provisions of this chapter do not apply. 

Amended by Chapter 356, 2009 General Session

 

38-8-2.   Lien against stored property -- Attachment and duration -- Search for financing statement prerequisite to enforcement of lien.

     (1) Where a rental agreement, as defined in Subsection 38-8-1(6), is entered into between the owner and the occupant, the owner of the self-service storage facility and the owner's heirs, executors, administrators, successors, and assigns have a lien upon all personal property located at the self-service storage facility for rent, labor, or other charges, present or future, in relation to the personal property and for expenses necessary for its preservation or expenses reasonably incurred in its sale or other disposition under this chapter.

     (2) The lien described in Subsection (1) attaches as of the date the personal property is brought to the self-service storage facility and continues so long as the owner retains possession and until any default is corrected, or a sale pursuant to a default is conducted, or the property is otherwise disposed of to satisfy the lien.

     (3) (a) Before taking enforcement action under Section 38-8-3, the owner shall determine if a financing statement filed in accordance with Title 70A, Chapter 9a, Part 5, Filing, has been filed with the Division of Corporations and Commercial Code concerning the property to be sold or otherwise disposed of.

     (b) A security interest evidenced by a financing statement filed in accordance with Title 70A, Chapter 9a, Part 5, Filing, has priority over the lien provided by this section. 

Amended by Chapter 252, 2000 General Session

 

  38-8-3.   Enforcement of lien -- Notice requirements -- Sale procedure and effect.

     A claim of an owner which has become due against an occupant and which is secured by the owner's lien may be satisfied as follows:

     (1) No enforcement action may be taken by the owner until the occupant has been in default continuously for a period of 30 days.

     (2) After the occupant has been in default continuously for a period of 30 days, the owner may begin enforcement action if the occupant has been given notice in writing. The notice shall be delivered in person or sent by certified mail to the last known address of the occupant. If the property to be sold in an enforcement action includes a vehicle, vessel, or outboard motor, as those terms are defined in Section 41-1a-102, or an aircraft as defined in Section 72-10-102, the notice shall also be delivered to the last known address of the registered owner and any lienholder, as disclosed by the records of the Motor Vehicle Division. A copy of the notice shall, at the same time, be sent to the sheriff of the county where the self-service storage facility is located. Any lienholder with an interest in the property to be sold or otherwise disposed of, of whom the owner has knowledge either through the disclosure provision on the rental agreement or through the existence of a validly filed and perfected UCC-1 financing statement with the Division of Corporations and Commercial Code, or through other written notification, shall be included in the notice process as set forth in this section.

     (3) This notice shall include:

     (a) 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;

     (b) a brief and general description of the personal property subject to the lien, which description shall be reasonably adequate to permit the person notified to identify the property; except that any container including, but not limited to, a trunk, valise, or box that is locked, fastened, sealed, or tied in a manner which deters immediate access to its contents may be described as such without describing its contents;

     (c) a notification of denial of access to the personal property, if such denial is permitted under the terms of the rental agreement, which notification shall provide the name, street address, and telephone number of the owner or his designated agent whom the occupant may contact to respond to the notification;

     (d) a demand for payment within a specified time not less than 15 days after delivery of the notice; and

     (e) a conspicuous statement that, unless the claim is paid within the time stated in the notice, the personal property will be advertised for sale or other disposition and will be sold or otherwise disposed of at a specified time and place.

     (4) Any notice made under this section shall be presumed delivered when it is deposited with the United States postal service and properly addressed with postage prepaid.

     (5) (a) After the expiration of the time given in the notice, an advertisement of the sale or other disposition shall be published:

     (i) (A) if there is a newspaper of general circulation in the county where the self-service storage facility is located, once a week for two consecutive weeks in a newspaper of general circulation in that county; or

     (B) if there is not a newspaper of general circulation in the county where the self-service storage facility is located, by posting the advertisement of sale or other disposition in not less than six conspicuous places in the neighborhood where the self-service storage facility is located;

and

     (ii) in accordance with Section 45-1-101 for two weeks.

     (b) The advertisement described in Subsection (5)(a) shall include:

     (i) a brief and general description of the personal property reasonably adequate to permit its identification as provided for in Subsection (3)(b); the address of the self-service storage facility and the number, if any, of the space where the personal property is located; and the name of the occupant and his last known address; and

     (ii) the time, place, and manner of the sale or other disposition, which sale or other disposition shall take place not sooner than 15 days after the first publication.

     (6) Any sale or other disposition of the personal property shall conform to the terms of the notice provided for in this section.

     (7) Any sale or other disposition of the personal property shall be held at the self-service storage facility or at the nearest suitable place to where the personal property is held or stored.

     (8) Before any sale or other disposition of personal property under this section, the occupant may pay the amount necessary to satisfy the lien and the reasonable expenses incurred under this section and thereby redeem the personal property; upon receipt of this payment, the owner shall return the personal property, and thereafter the owner shall have no liability to any person with respect to that personal property.

     (9) A purchaser in good faith of the personal property sold to satisfy a lien as provided for in this chapter takes the property free of any rights of persons against whom the lien was valid and free of any rights of a secured creditor, despite noncompliance by the owner with the requirements of this section.

     (10) In the event of a sale under this section, the owner may satisfy his lien for the proceeds of the sale, subject to the rights of any prior lienholder; the lien rights of the prior lienholder are automatically transferred to the proceeds of the sale; if the sale is made in good faith and is conducted in a reasonable manner, the owner shall not be subject to any surcharge for a deficiency in the amount of a prior secured lien, but shall hold the balance, if any, for delivery to the occupant, lienholder, or other person in interest; if the occupant, lienholder, or other person in interest does not claim the balance of the proceeds within one year of the date of sale, it shall become the property of the Utah state treasurer as unclaimed property with no further claim against the owner.

     (11) If the requirements of this chapter are not satisfied, if the sale of the personal property is not in conformity with the notice of sale, or if there is a willful violation of this chapter, nothing in this section affects the rights and liabilities of the owner, occupant, or any other person. 

Amended by Chapter 102, 2011 General Session

 

38-8-4.   Posting of notice.

     Each owner acting under this chapter shall keep posted in a prominent place in his office at all times a notice which reads as follows:

     "All articles stored by a rental agreement, and charges not having been paid for 30 days, will be sold or otherwise disposed of to pay charges." 

Enacted by Chapter 171, 1981 General Session

 

   38-8-5.   Other liens unaffected.

     Nothing in this section shall be construed as in any manner impairing or affecting the right of parties to create liens by special contract or agreement, nor shall it in any manner affect or impair other liens arising at common law or in equity, or by any statute of this state. 

Enacted by Chapter 171, 1981 General Session