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Maryland Lien Law.pdf
Courtesy of:
StorageLaws.net
Maryland Lien
Law
§ 18-501.
(a) In this
subtitle the following words have the meanings indicated.
(b) "Default"
means the failure to perform on time any obligation or duty set forth in the
rental agreement.
(c) "Last known
address" means that address provided by the occupant in the rental agreement or
the address provided by the occupant in a subsequent written notice of a change
of address.
(d) "Leased space"
means the individual storage space at the self-service facility which is rented
to an occupant pursuant to a rental agreement.
(e) "Occupant"
means a person, a sublessee, successor, or assign, entitled to the use of a
leased space at a self-service storage facility under a rental agreement.
(f) (1) "Operator"
means the owner, operator, lessor, or sublessor of a self-service storage
facility, an agent, or any other person authorized to manage the facility.
(2) "Operator"
does not mean a warehouseman, unless the operator issues a warehouse receipt,
bill of lading, or other document of title for the personal property stored.
(g) (1) "Personal
property" means movable property, not affixed to land.
(2) "Personal
property" includes, but is not limited to, goods, wares, merchandise, motor
vehicles, watercraft, and household items and furnishings.
(h) "Rental
agreement" means any written agreement that establishes or modifies the terms,
conditions, or rules concerning the use and occupancy of a self-service storage
facility.
(i) "Self-service
storage facility" means any real property used for renting or leasing individual
storage spaces in which the occupants themselves customarily store and remove
their own personal property on a "self-service" basis.
§ 18-502.
§ 18-503.
(a) The operator
of a self-service storage facility has a lien on all personal property stored
within each leased space for rent, labor, or other charges, and for expenses
reasonably incurred in its sale, as provided in this subtitle.
(b) The rental
agreement shall contain a statement, in bold type, advising the occupant:
(1) Of the
existence of the lien; and
(2) That property
stored in the leased space may be sold to satisfy the lien if the occupant is in
default.
§ 18-504.
(a) (1) If the
occupant is in default for a period of more than 60 days, the operator may
enforce the lien by selling the property stored in the leased space at a public
sale, for cash.
(2) Proceeds from
the sale shall be applied to satisfy the lien, and any surplus shall be
disbursed as provided in subsection (e) of this section.
(b) Before
conducting a sale under subsection (a), the operator shall:
(1) Notify the
occupant of the default by regular mail at the occupant's last known address;
(2) Send a second
notice of default by certified mail, return receipt requested, to the occupant
at the occupant's last known address which includes:
(i) A statement
that the contents of the occupant's leased space are subject to the operator's
lien;
(ii) A statement
of the operator's claim, indicating the charges due on the date of the notice,
the amount of any additional charges which shall become due before the date of
sale, and the date those additional charges shall become due;
(iii) A demand for
payment of the charges due within a specified time, not less than 14 days after
the date that the notice was mailed;
(iv) A statement
that unless the claim is paid within the time stated, the contents of the
occupant's space will be sold at a specified time and place; and
(v) The name,
street address, and telephone number of the operator, or his designated agent,
whom the occupant may contact to respond to the notice; and
(3) At least 3
days before the sale, advertise the time, place, and terms of the sale in a
newspaper of general circulation in the jurisdiction where the sale is to be
held.
(c) At any time
before a sale under this section, the occupant may pay the amount necessary to
satisfy the lien and redeem the occupant's personal property.
(d) The sale under
this section shall be held at the self-service storage facility where the
personal property is stored.
(e) If a sale is
held under this section, the operator shall:
(1) Satisfy the
lien from the proceeds of the sale; and
(2) Hold the
balance, if any, for delivery on demand to the occupant or any other recorded
lienholders.
(f) A purchaser in
good faith of any personal property sold under this subtitle takes the property
free and clear of any rights of:
(1) Persons
against whom the lien was valid; and
(2) Other
lienholders.
(g) If the
operator complies with the provisions of this subtitle, the operator's
liability:
(1) To the
occupant shall be limited to the net proceeds received from the sale of the
personal property; and
(2) To other
lienholders shall be limited to the net proceeds received from the sale of any
personal property covered by that other lien.
(h) If an occupant
is in default, the operator may deny the occupant access to the leased space.
(i) (1) Unless
otherwise specifically provided, all notices required by this subtitle shall be
sent by certified mail, return receipt requested.
(2) (i) Notices
sent to the operator shall be sent to the self-service storage facility where
the occupant's property is stored.
(ii) Notices to
the occupant shall be sent to the occupant at the occupant's last known address.
(3) Notices shall
be deemed delivered when deposited with the United States Postal Service,
properly addressed as provided in subsection (b), with postage prepaid.
(j) The operator
shall retain a copy of the second notice of default and the return receipt as
provided in subsection (b)(2) of this section for 6 months following the date of
the lien sale.
§ 18-505.
Unless the rental
agreement specifically provides otherwise and until a lien sale under this
subtitle, the exclusive care, custody, and control of all personal property
stored in the leased self-service storage space remains vested in the occupant.
§ 18-506.
All rental
agreements, entered into before July 1, 1983, which have not been extended or
renewed after that date, shall remain valid and may be enforced or terminated in
accordance with their terms or as permitted by any other statute or law of this
State.
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