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S.B. 198 Enrolled

                 

MOLD RETENTION LAW, MOLD LIEN LAW,

                 
AND CREDITOR'S RIGHTS

                 
1998 GENERAL SESSION

                 
STATE OF UTAH

                 
Sponsor: Mike Dmitrich

                  AN ACT RELATING TO COMMERCE AND TRADE; ENACTING THE MOLD RETENTION
                  AND LIEN ACT; DEFINING TERMS; PROVIDING FOR OWNERSHIP RIGHTS IN
                  MOLDS; AND PROVIDING FOR LIENS AGAINST MOLDS.
                  This act affects sections of Utah Code Annotated 1953 as follows:
                  ENACTS:
                      13-30-101, Utah Code Annotated 1953
                      13-30-102, Utah Code Annotated 1953
                      13-30-103, Utah Code Annotated 1953
                      13-30-201, Utah Code Annotated 1953
                      13-30-202, Utah Code Annotated 1953
                      13-30-203, Utah Code Annotated 1953
                      13-30-301, Utah Code Annotated 1953
                      13-30-302, Utah Code Annotated 1953
                      38-2-6, Utah Code Annotated 1953
                  Be it enacted by the Legislature of the state of Utah:
                      Section 1. Section 13-30-101 is enacted to read:
                 
CHAPTER 30. MOLD RETENTION AND LIEN ACT

                 
Part 1. General Provisions

                      13-30-101. Title.
                      This chapter shall be known as the "Mold Retention and Lien Act."
                      Section 2. Section 13-30-102 is enacted to read:
                      13-30-102. Definitions.
                      As used in this chapter:
                      (1) "All rights and title" does not include rights or title in patents or copyrights.


                      (2) "Customer" means a person that:
                      (a) causes a molder to fabricate, cast, or otherwise make a mold; or
                      (b) provides a molder with a mold to make a product for the customer.
                      (3) "Make" includes to manufacture, assemble, cast, or fabricate.
                      (4) "Mold" includes a die, form, or pattern.
                      (5) (a) "Molder" means a person that makes or uses a mold for the purpose of making a
                  product for a customer.
                      (b) "Molder" includes a tool or die maker.
                      Section 3. Section 13-30-103 is enacted to read:
                      13-30-103. Relationship to federal law.
                      This chapter does not affect any right of a customer under federal law related to patent,
                  copyright, or unfair competition.
                      Section 4. Section 13-30-201 is enacted to read:
                 
Part 2. Retention of Molds

                      13-30-201. Ownership rights to molds.
                      (1) Unless otherwise agreed to by the molder and the customer, the customer has all rights
                  and title to a mold in the possession of the molder.
                      (2) If a customer does not claim possession from a molder of a mold within three years
                  following the last prior use of the mold, all rights and title to the mold may be transferred to the
                  molder in accordance with Section 13-30-202 for the purpose of destroying or otherwise disposing
                  of the mold.
                      Section 5. Section 13-30-202 is enacted to read:
                      13-30-202. Transfer of ownership to molder.
                      (1) If a customer does not claim possession from a molder of a mold within three years
                  following the last prior use of the mold, the molder may transfer all rights and title to the mold in
                  accordance with this section.
                      (2) (a) Prior to obtaining all rights and title to the mold, the molder shall send written notice
                  by registered mail to the last-known address of the customer notifying the customer that the molder

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                  is terminating the customer's rights and title to the mold.
                      (b) The notice required under Subsection (2)(a) shall disclose the rights of the customer
                  under Subsection (3).
                      (3) All rights and title of the customer to the mold are transferred to the molder 120 days
                  from the date the notice required by Subsection (2)(a) is sent unless the customer:
                      (a) responds in person or by mail to claim possession of the mold within the 120-day period;
                  or
                      (b) makes other contractual arrangements with the molder for the storage of the mold.
                      (4) After rights and title to a mold are transferred to the molder under Subsection (2), the
                  molder may destroy or otherwise dispose of the mold without liability to the customer.
                      Section 6. Section 13-30-203 is enacted to read:
                      13-30-203. Scope of part.
                      In determining whether a customer has claimed possession of a mold within three years
                  following the last prior use, a molder may include any period following the last prior use of a mold
                  even if that period is prior to May 4, 1998.
                      Section 7. Section 13-30-301 is enacted to read:
                 
Part 3. Mold Liens

                      13-30-301. Mold liens.
                      (1) If a molder has possession of a mold belonging to a customer, the molder has a lien on
                  the mold for the balance due from the customer for:
                      (a) work for the customer involving the mold; and
                      (b) the value of all materials related to work described in Subsection (1)(a).
                      (2) (a) Prior to enforcing the lien, the molder shall deliver or send written notice by
                  registered mail to the last-known address of the customer notifying the customer that the molder
                  intends to enforce the lien.
                      (b) The notice required by Subsection (2)(a) shall:
                      (i) state that the lien is claimed for damages for failure to pay under a contract for work for
                  the customer involving the mold;

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                      (ii) include a demand for payment; and
                      (iii) be accompanied by the written contract, if any, for the work performed for the customer.
                      (3) If the molder is not paid the amount due within 60 days from the day the notice required
                  by Subsection (2) is received by the customer, the molder may sell the mold at a public auction in
                  accordance with Section 13-30-302 .
                      Section 8. Section 13-30-302 is enacted to read:
                      13-30-302. Sale of molds for payment of lien.
                      (1) (a) Prior to selling a mold, the molder shall send written notice by registered mail to the
                  last-known address of the customer.
                      (b) The notice required by Subsection (1)(a) shall include:
                      (i) the molder's intention to sell the mold 30 days from the day the customer received the
                  notice;
                      (ii) the description of the mold to be sold;
                      (iii) the time and place of the sale; and
                      (iv) an itemized statement for the amount due the molder from the customer.
                      (c) A molder shall publish notice of the molder's intention to sell a mold in a newspaper of
                  general circulation covering the customer's last-known address, if:
                      (i) the receipt of the mailing of the notice described in Subsection (1)(a) is not returned; or
                      (ii) the postal service returns the notice described in Subsection (1)(a) as being
                  nondeliverable.
                      (d) The notice provided for in Subsection (1)(c) shall include a description of the mold.
                      (2) A molder may sell a mold 30 days from the later of the day:
                      (a) the customer received the notice in accordance with Subsection (1)(a); or
                      (b) the date the molder published the notice under Subsection (1)(c).
                      (3) If from the sale of a mold under this section the molder receives an amount in excess of
                  the amount of the lien, the excess shall be paid as follows:
                      (a) to any prior lienholder known to the molder at the time of the sale; and
                      (b) after paying any lienholder under Subsection (3)(a), the remainder:

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                      (i) if the customer's address is known at the time of sale, to the customer; or
                      (ii) if the customer's address is not known at the time of sale, to the state in accordance with
                  Title 67, Chapter 4a, Unclaimed Property Act.
                      Section 9. Section 38-2-6 is enacted to read:
                      38-2-6. Mold liens.
                      Title 13, Chapter 30, Mold Retention and Lien Act, governs liens on molds in the possession
                  of a molder as those terms are defined in Section 13-30-102 .

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