Title 38 Chapter 8 Section 3

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Index	Utah Code
Title 38	Liens
Chapter 8	Self-Service Storage Facilities
Section 3	Enforcement of lien -- Notice requirements -- Sale procedure and effect. *(Effective 5/1/2024)*

Effective 5/1/2024
38-8-3. Enforcement of lien -- Notice requirements -- Sale procedure and effect.

(1)

An owner may enforce a lien described in Section 38-8-2 against an occupant and sell, donate, or dispose of stored property under Subsection 38-8-3, without liability if:

(a)	the occupant is in default for a continuous 30-day period; and

(b)

the owner provides written notice of the owner's intent to enforce the lien, in accordance with the requirements of this section, to:

(i)	the occupant;

(ii)	each lienholder disclosed by the occupant under Subsection 38-8-2(3)(b);

(iii)

each person that has filed a valid financing statement with the Division of Corporations and Commercial Code; and

(iv)	each person identified as a lienholder in the records of the Motor Vehicle Division.

(2)

The owner may sell, donate, or dispose of any property remaining at the self-service storage facility at the end of a rental agreement without liability if:

(a)	the owner has provided written notice to the occupant by first-class mail to the occupant's last known address or by email to the occupant's last known email address;

(b)	the written notice states that the owner will sell, donate, or dispose of the property following a specified date at least 15 days after the date of the notice, unless the occupant removes the property before the specified date; and

(c)	any proceeds remaining after the owner deducts rent, labor or other charges, and expenses reasonably incurred in the sale or disposal of the personal property are delivered to the Utah state treasurer as unclaimed property.

(3)

An owner shall provide the written notice described in Subsection (1)(b):

(a)	in person;

(b)	by certified mail, to the person's last known address; or

(c)	subject to Subsection (4), by email, to the person's last know email address.

(4)

If an owner sends a notice described in Subsection (3) by email and does not receive a response, return receipt, or delivery confirmation from the email address to which the notice was sent within three business days after the day on which the notice was sent, the owner shall deliver the notice in person or by certified mail to the person's last known address.

(5)

A written notice described in Subsection (1)(b) 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 description of the personal property subject to the lien that permits the person to identify the property, unless the property is locked, fastened, sealed, tied, or otherwise stored in a manner that prevents immediate identification of the property;

(c)	if permitted by the terms of the rental agreement, a notice that the occupant may not access the occupant's personal property until the occupant complies with the requirements described in Subsection (10);

(d)	the name, street address, and telephone number of the owner or the individual the occupant may contact to respond to the notification;

(e)	a demand for payment within a specified time not less than 15 days after the day on which the notice is delivered; and

(f)

a conspicuous statement that, unless the claim is paid within the time stated in the notice, the owner will:

(i)	sell, donate, or dispose of the personal property: or

(ii)	advertise the personal property to be sold at a specified time and place.

(6)	A notice under this section shall be presumed delivered when it is deposited with the United States Postal Service and properly addressed with postage prepaid.

(7)

(a)

(i)	After the expiration of the time given in the notice, the owner shall publish an advertisement of the sale of the personal property subject to the lien once in a newspaper of general circulation in the county where the self-service storage facility is located.

(ii)

An advertisement described in Subsection (7)(a)(i) shall include:

(A)	the address of the self-service storage facility and the number, if any, of the space where the personal property is located;

(B)	the name of the occupant; and

(C)	the time, place, and manner of the sale, which shall take place not sooner than 15 days after the day on which the sale is advertised under Subsection (7)(a)(i).

(b)

Subsection (7)(a) does not apply if:

(i)

the owner:

(A)	provided the notice described in Subsection (1)(b) by email; and

(B)	received a response or return receipt from the email address to which the notice was sent; or

(ii)

the owner:

(A)	provided the notice described in Subsection (1)(b) by certified mail; and

(B)	has evidence of providing the notice by certified mail.

(8)	A sale of the personal property shall conform to the terms of the notice provided for in this section.

(9)	A sale of the personal property shall be held at the self-service storage facility, at the nearest suitable place to where the personal property is held or stored, or online.

(10)

Before a sale 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.

(11)

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.

(12)

In the event of a sale under this section, the owner may satisfy the 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.

(13)	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 383, 2024 General Session

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