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Senate File 528 - IntroducedA Bill ForAn Act 1relating to self-service storage facilities, including
2the creation and enforcement of liens on personal property
3within leased spaces.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 578B.1 Short title.
2This Act shall be known as the “Self-Service Storage
3Facilities Act”.
4 Sec. 2. NEW SECTION. 578B.2 Definitions.
5As used in this chapter, unless the context clearly requires
6otherwise:
71. “Commercially reasonable sale” means a sale that is
8conducted at the self-service storage facility, at the nearest
9suitable place to where the personal property is held or
10stored, or on a publicly accessible internet site that conducts
11sales or auctions.
122. “Default” means the failure by the occupant to perform on
13time any obligation or duty set forth in a rental agreement or
14this chapter.
153. “Emergency” means any sudden, unexpected occurrence
16or circumstance at or near a self-service storage facility
17that requires immediate action to avoid injury to persons
18or property at or near the self-service storage facility,
19including a fire.
204. “Last-known address” means the postal address or
21electronic mail address provided by an occupant in a rental
22agreement or the postal address or electronic mail address
23provided by the occupant in a subsequent written notice of a
24change of address.
255. “Late fee” means any fee or charge assessed for an
26occupant’s failure to pay rent when due. “Late fee” does not
27include interest on a debt, reasonable expenses incurred in
28the collection of unpaid rent, or costs associated with the
29enforcement of any other remedy provided by law or contract.
306. “Leased space” means individual storage space at a
31self-service storage facility which is rented to an occupant
32pursuant to a rental agreement.
337. “Occupant” means a person entitled to the use of leased
34space at a self-service storage facility under a rental
35agreement or the person’s successors or assigns.
-1- 18. “Operator” means the owner, operator, lessor, or
2sublessor of a self-service storage facility or an agent or any
3other person authorized to manage the facility. “Operator” does
4not include a warehouse worker if the warehouse worker issues a
5warehouse receipt, bill of lading, or other document of title
6for the personal property stored.
79. “Personal property” means movable property not affixed
8to land, including goods, wares, merchandise, motor vehicles,
9watercraft, household items, and furnishings.
1010. “Property that has no commercial value” means property
11offered for sale in a commercially reasonable sale that
12receives no bid or offer.
1311. “Rental agreement” means an agreement or lease, written
14or oral, that establishes or modifies the terms, conditions,
15or rules concerning the use and occupancy of leased space at a
16self-service storage facility.
1712. “Self-service storage facility” means real property
18designed and used for the purpose of renting or leasing
19individual storage space to occupants who are to have access
20to the space for the purpose of storing personal property. If
21an operator issues a warehouse receipt, bill of lading, or
22other document of title for the personal property stored, the
23operator and occupant are subject to chapter 554, article 7,
24and this chapter does not apply.
2513. “Verified mail” means any method of mailing offered by
26the United States postal service or private delivery service
27that provides evidence of the mailing.
28 Sec. 3. NEW SECTION. 578B.3 Facility not residence.
291. An operator shall not knowingly permit a leased space
30at a self-service storage facility to be used for residential
31purposes.
322. An occupant shall not use a leased space for residential
33purposes.
34 Sec. 4. NEW SECTION. 578B.4 Notice and consent for
35inspection and repair.
-2- 1Unless otherwise provided in a rental agreement, an
2occupant, upon reasonable request from the operator, shall
3allow the operator to enter a leased space for the purpose of
4inspection or repair. If an emergency occurs, an operator may
5enter a leased space for inspection or repair without notice to
6or consent from the occupant.
7 Sec. 5. NEW SECTION. 578B.5 Lien — late fee — electronic
8communication permitted.
91. The operator of a self-service storage facility and the
10operator’s heirs, executors, administrators, successors, and
11assigns shall have a lien upon all of an occupant’s personal
12property located at the self-service storage facility for
13delinquent rent, late fees, labor, or other charges incurred
14pursuant to a rental agreement and for expenses incurred for
15preservation, sale, or disposition of the personal property.
16The lien established by this subsection shall have priority
17over all other liens and security interests except for those
18perfected prior to the time the personal property is brought to
19the self-service storage facility.
202. The lien described in subsection 1 attaches on the date
21on which personal property is brought to the self-service
22storage facility.
233. If the rental agreement specifies a limit on the value
24of personal property that the occupant may store in the leased
25space, such limit shall be deemed to be the maximum value of
26the personal property in the occupant’s leased space.
274. A rental agreement under this chapter may provide for a
28reasonable late fee for failure of the occupant to timely make
29payments for the leased space when due. A monthly late fee of
30twenty dollars or twenty percent of the monthly rental amount,
31whichever is greater, shall be reasonable and is not a penalty.
325. The operator and occupant may agree to use electronic
33mail to satisfy all notice requirements under this chapter.
34The parties, if consenting to use electronic mail for notice,
35must consent to use electronic mail for all notices. If the
-3-1parties agree, the rental agreement shall contain a section
2outlining the rights and duties for each party regarding the
3use of electronic mail.
4 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
5default.
6If the occupant is in default, the operator shall have the
7right to deny the occupant access to the leased space at the
8self-service storage facility if such right is set forth in the
9rental agreement.
10 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
111. If an occupant is in default for a period of at least
12thirty days, the operator may enforce the lien granted in
13section 578B.5 by selling the occupant’s personal property.
14Sale of the occupant’s personal property may be by public or
15private proceedings. Such personal property may be sold as a
16unit or in parcels, by way of one or more contracts, at any time
17or place, and on any terms as long as the sale is commercially
18reasonable. The operator may otherwise dispose of any property
19that has no commercial value.
202. Before conducting a sale under this section, the operator
21shall do all of the following:
22a. Send notice of default to the occupant by hand mail,
23verified mail, or electronic mail pursuant to subsection 7.
24The notice of default shall include all of the following:
25(1) A statement of the operator’s claim showing that the
26amount due at the time of the notice and the date when the
27amount became due.
28(2) A brief and general description of the personal property
29subject to the lien. The description shall be reasonably
30adequate to permit the occupant to identify the property,
31except that any container including a trunk, valise, or box
32that is locked, fastened, sealed, or tied in a manner which
33deters immediate access to the container’s contents shall be
34described as such and shall omit a description of the contents.
35(3) A demand for payment of the charges due within a
-4-1specified time, which shall not be less than fourteen days
2after the date of the notice.
3(4) A statement that unless the claim is paid within the
4time stated, the contents of the occupant’s leased space will
5be sold or otherwise disposed of after a specified time.
6(5) The name, street address, and telephone number of the
7operator or a designated agent whom the occupant may contact to
8respond to the notice.
9b. Notify all persons whom the operator has actual knowledge
10who claim a security interest in the personal property.
11At least seven days before the sale, the operator shall
12also advertise the time, place, and terms of the sale in a
13commercially reasonable manner. The manner of advertisement
14is deemed commercially reasonable if it is likely to attract
15at least three independent bidders to attend or view the sale
16in person or online at the time and place advertised. The
17operator may buy the occupant’s personal property at any public
18sale held pursuant to this section.
193. If the personal property subject to the operator’s lien
20is a vehicle, watercraft, or trailer, and rent or other charges
21remain due and unpaid for thirty days, the operator may have
22the vehicle, watercraft, or trailer towed from the self-service
23storage facility. The operator shall not be liable for any
24damages to the vehicle, watercraft, or trailer once the tower
25takes possession of the property. Removal of any vehicle,
26watercraft, or trailer from the self-service storage facility
27shall not release the operator’s lien.
284. At any time before a sale is held under this section or
29before a vehicle, watercraft, or trailer is towed under this
30section, the occupant may pay the amount necessary to satisfy
31the lien and redeem the occupant’s personal property.
325. In the event of a sale under this section, the operator
33may satisfy the lien from the proceeds of the sale, but shall
34hold the balance, if any, for a period of ninety days for
35delivery on demand to the occupant. If the occupant does not
-5-1claim the balance within ninety days, the balance shall be paid
2to the county treasurer in the county where the self-service
3storage facility is located. The county treasurer shall hold
4the funds for a period of two years. If a claim is not made by
5the owner of the fund, then the fund shall become the property
6of the county. There shall be no further recourse by any
7person against the operator for an action pursuant to this
8section.
96. A purchaser in good faith of any personal property sold
10to satisfy a lien under this chapter takes the property free
11of any rights of persons against whom the lien was valid,
12despite noncompliance by the operator with the requirements of
13this chapter. The purchaser of a motor vehicle shall apply
14for a new title to the vehicle by the procedures outlined in
15section 321.47. For all other property which has a written
16title, the purchaser shall follow the applicable procedures for
17the property for the transfer of title by operation of law.
18No sale under this chapter extinguishes an unreleased prior
19perfected lien.
207. Notice to the occupant under subsection 2, paragraph
21“a”, shall be sent to the occupant’s last-known address by hand
22delivery, verified mail, or electronic mail. Notices sent
23by hand delivery shall be deemed delivered when the occupant
24has signed an acknowledgment of delivery. Notices sent by
25verified mail shall be deemed delivered when deposited with the
26United States postal service or private delivery service if the
27notices are properly addressed with postage prepaid. Notices
28sent by electronic mail shall be deemed delivered when an
29electronic mail is sent to the last-known address provided by
30the occupant. If the operator sends notice by electronic mail
31and receives an automated message stating that the electronic
32mail cannot be delivered, the operator shall send notice by
33hand delivery or by verified mail to the occupant’s last-known
34address with postage prepaid.
358. If the operator complies with the requirements of this
-6-1section, the operator’s liability:
2a. To the occupant, shall be limited to the net proceeds
3received from the sale of the occupant’s personal property
4less any proceeds paid to the holders of any lien or security
5interest of record on the personal property being sold.
6b. To the holders of any lien or security interest of record
7on the personal property being sold, shall be limited to the
8net proceeds received from the sale of the personal property
9subject to the holder’s lien or security interest.
10 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
11control of personal property vested in occupant.
12Unless the rental agreement specifically provides otherwise
13and until a lien sale under section 578B.7, the exclusive care,
14custody, and control of all personal property stored in a
15leased space remains vested in the occupant.
16 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
17This chapter does not impair the powers of the parties to a
18rental agreement to create rights, duties, or obligations that
19do not arise from this chapter. This chapter does not impair
20or impact the rights of parties to create liens by special
21contract or agreement, nor does it affect or impair other liens
22arising at common law or in equity, or by a statute of this
23state. The rights provided to an operator by this chapter are
24in addition to all other rights provided by law to a creditor
25against a debtor.
26 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
271, Code 2019, is amended to read as follows:
28Except as provided in this chapter, an owner of a vehicle
29subject to registration shall make application to the county
30treasurer of the county of the owner’s residence, or if a
31nonresident, to the county treasurer of the county where the
32primary users of the vehicle are located, or if a lessor of
33the vehicle pursuant to chapter 321F which vehicle has a
34gross vehicle weight of less than ten thousand pounds, to the
35county treasurer of the county of the lessee’s residence,
-7-1or if a firm, association, or corporation with vehicles in
2multiple counties, the owner may make application to the county
3treasurer of the county where the primary user of the vehicle
4is located, for the registration and issuance of a certificate
5of title for the vehicle upon the appropriate form furnished
6by the department. However, upon the transfer of ownership,
7the owner of a vehicle subject to the apportioned registration
8provisions of chapter 326 shall make application for issuance
9of a certificate of title to either the department or the
10appropriate county treasurer. The owner of a vehicle purchased
11pursuant to section 578B.7 shall present documentation that
12such sale was completed in compliance with that section. The
13application shall be accompanied by a fee of twenty dollars,
14and shall bear the owner’s signature. A nonresident owner
15of two or more vehicles subject to registration may make
16application for registration and issuance of a certificate
17of title for all vehicles subject to registration to the
18county treasurer of the county where the primary user of any
19of the vehicles is located. The owner of a mobile home or
20manufactured home shall make application for a certificate
21of title under this section from the county treasurer of the
22county where the mobile home or manufactured home is located.
23The application shall contain:
24 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
25amended to read as follows:
261. Notwithstanding other provisions of this chapter,
27the owner of a commercial vehicle subject to the apportioned
28registration provisions of chapter 326 may make application
29to the department or the appropriate county treasurer
30for a certificate of title. The owner of a commercial
31vehicle purchased pursuant to section 578B.7 shall present
32documentation that such sale was completed in compliance
33with that section. The application for certificate of title
34shall be made within thirty days of purchase or transfer and
35shall be accompanied by a twenty dollar title fee and the
-8-1appropriate fee for new registration. The department or the
2county treasurer shall deliver the certificate of title to the
3owner if there is no security interest. If there is a security
4interest, the title, when issued, shall be delivered to the
5first secured party. Delivery may be made using electronic
6means.
7 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
82019, is amended to read as follows:
9a. If the vehicle to be registered is a specially
10constructed vehicle, reconstructed vehicle, street rod, replica
11vehicle, or foreign vehicle, such fact shall be stated in the
12application. A fee of ten dollars shall be paid by the person
13making the application upon issuance of a certificate of title
14by the county treasurer. For a specially constructed vehicle,
15reconstructed vehicle, street rod, or replica vehicle subject
16to registration, the application shall be accompanied by a
17statement from the department authorizing the motor vehicle
18to be titled and registered in this state. The owner of a
19specially constructed vehicle, reconstructed vehicle, street
20rod, replica vehicle, or foreign vehicle purchased pursuant to
21section 578B.7 shall present documentation that such sale was
22completed in compliance with that section.
23 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
24to read as follows:
251. If ownership of a vehicle is transferred by operation of
26law upon inheritance, devise or bequest, dissolution decree,
27order in bankruptcy, insolvency, replevin, foreclosure or
28execution sale, abandoned vehicle sale, or when the engine of a
29motor vehicle is replaced by another engine, or a vehicle is
30sold or transferred to satisfy an artisan’s lien as provided
31in chapter 577, a landlord’s lien as provided in chapter 570,
32a self-service storage facility lien as provided in section
33578B.7, a storage lien as provided in chapter 579, a judgment
34in an action for abandonment of a manufactured or mobile home
35as provided in chapter 555B, upon presentation of an affidavit
-9-1relating to the disposition of a valueless mobile, modular, or
2manufactured home as provided in chapter 555C, or repossession
3is had upon default in performance of the terms of a security
4agreement, the county treasurer in the transferee’s county of
5residence or, in the case of a mobile home or manufactured
6home, the county treasurer of the county where the mobile home
7or manufactured home is located, upon the surrender of the
8prior certificate of title or the manufacturer’s or importer’s
9certificate, or when that is not possible, upon presentation
10of satisfactory proof to the county treasurer of ownership
11and right of possession to the vehicle and upon payment of a
12fee of twenty dollars and the presentation of an application
13for registration and certificate of title, may issue to the
14applicant a registration card for the vehicle and a certificate
15of title to the vehicle. A person entitled to ownership of
16a vehicle under a decree of dissolution shall surrender a
17reproduction of a certified copy of the dissolution and upon
18fulfilling the other requirements of this chapter is entitled
19to a certificate of title and registration receipt issued in
20the person’s name.
21 Sec. 14. Section 462A.77, Code 2019, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
24section 578B.7 shall present documentation that such sale was
25completed in compliance with that section.
26 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
27amended to read as follows:
281. If ownership of a vessel is transferred by operation of
29law, such as by inheritance, order in bankruptcy, insolvency,
30replevin, or execution sale, or in compliance with section
31578B.7, the transferee, within thirty days after acquiring the
32right to possession of the vessel by operation of law, shall
33mail or deliver to the county recorder satisfactory proof of
34ownership as the county recorder requires, together with an
35application for a new certificate of title, and the required
-10-1fee. A title tax is not required on these transactions.
2 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill enacts a new Code chapter on self-service storage
7facility liens and repeals the current Code chapter on the same
8subject.
9The bill provides definitions. Significant definitions are
10as follows. “Leased space” means individual storage space at a
11self-service storage facility which is rented to an occupant
12pursuant to rental agreement. “Occupant” means a person
13entitled to the use of leased space at a self-service storage
14under a rental agreement or the person’s successors or assigns.
15“Operator” means the owner, operator, lessor, or sublessor
16of a self-service storage facility or an agent or any other
17person authorized to manage the facility. “Operator” does
18not include a warehouse worker if the warehouse worker issues
19a warehouse receipt, bill of lading, or other document of
20title for the personal property stored. “Self-service storage
21facility” means real property designed and used for the purpose
22of renting or leasing individual storage space to occupants
23who are to have access to the space for the purpose of storing
24personal property. If an operator issues a warehouse receipt,
25bill of lading, or other document of title for the personal
26property stored, the operator and occupant are subject to Code
27chapter 554, article 7, and new Code chapter 578B does not
28apply.
29The bill provides that a leased space shall not be leased for
30a residential purpose by an operator or used by an occupant for
31a residential purpose. The bill provides that unless otherwise
32provided in a rental agreement, upon reasonable request from
33the operator, the occupant shall allow the operator to enter
34the leased space for inspection and repair. However, during
35an emergency, the operator may enter the leased space without
-11-1notice and consent from the occupant.
2The bill provides that an operator shall have a lien on
3an occupant’s personal property for delinquent rent, late
4fees, labor, or other charges incurred pursuant to the rental
5agreement and for expenses incurred for preservation, sale, or
6disposition of the personal property. The bill provides that
7the operator’s lien shall have priority over all other liens
8and security interests except those perfected prior to the time
9the personal property is brought to the self-service storage
10facility. The bill provides that the lien attaches on the date
11the personal property is brought to the self-service storage
12facility. The bill provides that if the rental agreement
13specifies a limit on the value of personal property that the
14occupant may store in the leased space, such limit shall be
15deemed to be the maximum value of the personal property in
16the occupant’s leased space. The bill provides that a rental
17agreement under the bill may provide for a reasonable late fee
18for failure to make timely payments. The bill provides that
19$20 or 20 percent of the monthly rental amount, whichever is
20greater, shall be deemed reasonable and is not a penalty.
21The bill provides that the operator and occupant may agree to
22use electronic mail to satisfy all notice requirements under
23the bill. The bill provides that the parties, if consenting to
24use electronic mail for notice, must consent to use electronic
25mail for all notices. The bill provides that if the parties
26agree, the rental agreement shall contain a section outlining
27the rights and duties for each party regarding the use of
28electronic mail.
29The bill provides that the operator has the right to deny
30the occupant access to the leased space if the occupant is in
31default if such right is set forth in the rental agreement.
32The bill provides a process for enforcement of a lien, which
33allows an operator to sell an occupant’s personal property if
34an occupant has been in default for a period of at least 30
35days and requires notices to be served on the occupant prior
-12-1to a commercially reasonable sale. Prior to the sale, the
2occupant may satisfy the lien and redeem the personal property.
3Additional details are provided in the bill.
4The bill provides that the occupant has exclusive care,
5custody, and control of personal property stored in leased
6property until a lien sale, unless a rental agreement provides
7otherwise.
8The bill does not affect the ability of the parties to a
9rental agreement to create rights, duties, and obligations
10that do not arise from the bill. Furthermore, the bill does
11not impair or impact the right of parties to create liens by
12special contract or agreement, nor does the bill affect or
13impair other liens arising at common law or in equity, or by a
14statute of this state. Additionally, the bill provides that
15the rights provided to the operator are in addition to the
16rights provided to a creditor against a debtor by law.
17The bill amends sections in Code chapter 321 (motor vehicles
18and laws of the road) and Code chapter 462A (water navigation
19regulations) to provide that the owner of a vehicle purchased
20pursuant to new Code section 578B.7 shall present documentation
21that such sale was completed in compliance with that Code
22section which provided the process for lien enforcement.
-13-asf/jh
2the creation and enforcement of liens on personal property
3within leased spaces.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 578B.1 Short title.
2This Act shall be known as the “Self-Service Storage
3Facilities Act”.
4 Sec. 2. NEW SECTION. 578B.2 Definitions.
5As used in this chapter, unless the context clearly requires
6otherwise:
71. “Commercially reasonable sale” means a sale that is
8conducted at the self-service storage facility, at the nearest
9suitable place to where the personal property is held or
10stored, or on a publicly accessible internet site that conducts
11sales or auctions.
122. “Default” means the failure by the occupant to perform on
13time any obligation or duty set forth in a rental agreement or
14this chapter.
153. “Emergency” means any sudden, unexpected occurrence
16or circumstance at or near a self-service storage facility
17that requires immediate action to avoid injury to persons
18or property at or near the self-service storage facility,
19including a fire.
204. “Last-known address” means the postal address or
21electronic mail address provided by an occupant in a rental
22agreement or the postal address or electronic mail address
23provided by the occupant in a subsequent written notice of a
24change of address.
255. “Late fee” means any fee or charge assessed for an
26occupant’s failure to pay rent when due. “Late fee” does not
27include interest on a debt, reasonable expenses incurred in
28the collection of unpaid rent, or costs associated with the
29enforcement of any other remedy provided by law or contract.
306. “Leased space” means individual storage space at a
31self-service storage facility which is rented to an occupant
32pursuant to a rental agreement.
337. “Occupant” means a person entitled to the use of leased
34space at a self-service storage facility under a rental
35agreement or the person’s successors or assigns.
-1- 18. “Operator” means the owner, operator, lessor, or
2sublessor of a self-service storage facility or an agent or any
3other person authorized to manage the facility. “Operator” does
4not include a warehouse worker if the warehouse worker issues a
5warehouse receipt, bill of lading, or other document of title
6for the personal property stored.
79. “Personal property” means movable property not affixed
8to land, including goods, wares, merchandise, motor vehicles,
9watercraft, household items, and furnishings.
1010. “Property that has no commercial value” means property
11offered for sale in a commercially reasonable sale that
12receives no bid or offer.
1311. “Rental agreement” means an agreement or lease, written
14or oral, that establishes or modifies the terms, conditions,
15or rules concerning the use and occupancy of leased space at a
16self-service storage facility.
1712. “Self-service storage facility” means real property
18designed and used for the purpose of renting or leasing
19individual storage space to occupants who are to have access
20to the space for the purpose of storing personal property. If
21an operator issues a warehouse receipt, bill of lading, or
22other document of title for the personal property stored, the
23operator and occupant are subject to chapter 554, article 7,
24and this chapter does not apply.
2513. “Verified mail” means any method of mailing offered by
26the United States postal service or private delivery service
27that provides evidence of the mailing.
28 Sec. 3. NEW SECTION. 578B.3 Facility not residence.
291. An operator shall not knowingly permit a leased space
30at a self-service storage facility to be used for residential
31purposes.
322. An occupant shall not use a leased space for residential
33purposes.
34 Sec. 4. NEW SECTION. 578B.4 Notice and consent for
35inspection and repair.
-2- 1Unless otherwise provided in a rental agreement, an
2occupant, upon reasonable request from the operator, shall
3allow the operator to enter a leased space for the purpose of
4inspection or repair. If an emergency occurs, an operator may
5enter a leased space for inspection or repair without notice to
6or consent from the occupant.
7 Sec. 5. NEW SECTION. 578B.5 Lien — late fee — electronic
8communication permitted.
91. The operator of a self-service storage facility and the
10operator’s heirs, executors, administrators, successors, and
11assigns shall have a lien upon all of an occupant’s personal
12property located at the self-service storage facility for
13delinquent rent, late fees, labor, or other charges incurred
14pursuant to a rental agreement and for expenses incurred for
15preservation, sale, or disposition of the personal property.
16The lien established by this subsection shall have priority
17over all other liens and security interests except for those
18perfected prior to the time the personal property is brought to
19the self-service storage facility.
202. The lien described in subsection 1 attaches on the date
21on which personal property is brought to the self-service
22storage facility.
233. If the rental agreement specifies a limit on the value
24of personal property that the occupant may store in the leased
25space, such limit shall be deemed to be the maximum value of
26the personal property in the occupant’s leased space.
274. A rental agreement under this chapter may provide for a
28reasonable late fee for failure of the occupant to timely make
29payments for the leased space when due. A monthly late fee of
30twenty dollars or twenty percent of the monthly rental amount,
31whichever is greater, shall be reasonable and is not a penalty.
325. The operator and occupant may agree to use electronic
33mail to satisfy all notice requirements under this chapter.
34The parties, if consenting to use electronic mail for notice,
35must consent to use electronic mail for all notices. If the
-3-1parties agree, the rental agreement shall contain a section
2outlining the rights and duties for each party regarding the
3use of electronic mail.
4 Sec. 6. NEW SECTION. 578B.6 Right to deny access due to
5default.
6If the occupant is in default, the operator shall have the
7right to deny the occupant access to the leased space at the
8self-service storage facility if such right is set forth in the
9rental agreement.
10 Sec. 7. NEW SECTION. 578B.7 Enforcement of lien.
111. If an occupant is in default for a period of at least
12thirty days, the operator may enforce the lien granted in
13section 578B.5 by selling the occupant’s personal property.
14Sale of the occupant’s personal property may be by public or
15private proceedings. Such personal property may be sold as a
16unit or in parcels, by way of one or more contracts, at any time
17or place, and on any terms as long as the sale is commercially
18reasonable. The operator may otherwise dispose of any property
19that has no commercial value.
202. Before conducting a sale under this section, the operator
21shall do all of the following:
22a. Send notice of default to the occupant by hand mail,
23verified mail, or electronic mail pursuant to subsection 7.
24The notice of default shall include all of the following:
25(1) A statement of the operator’s claim showing that the
26amount due at the time of the notice and the date when the
27amount became due.
28(2) A brief and general description of the personal property
29subject to the lien. The description shall be reasonably
30adequate to permit the occupant to identify the property,
31except that any container including a trunk, valise, or box
32that is locked, fastened, sealed, or tied in a manner which
33deters immediate access to the container’s contents shall be
34described as such and shall omit a description of the contents.
35(3) A demand for payment of the charges due within a
-4-1specified time, which shall not be less than fourteen days
2after the date of the notice.
3(4) A statement that unless the claim is paid within the
4time stated, the contents of the occupant’s leased space will
5be sold or otherwise disposed of after a specified time.
6(5) The name, street address, and telephone number of the
7operator or a designated agent whom the occupant may contact to
8respond to the notice.
9b. Notify all persons whom the operator has actual knowledge
10who claim a security interest in the personal property.
11At least seven days before the sale, the operator shall
12also advertise the time, place, and terms of the sale in a
13commercially reasonable manner. The manner of advertisement
14is deemed commercially reasonable if it is likely to attract
15at least three independent bidders to attend or view the sale
16in person or online at the time and place advertised. The
17operator may buy the occupant’s personal property at any public
18sale held pursuant to this section.
193. If the personal property subject to the operator’s lien
20is a vehicle, watercraft, or trailer, and rent or other charges
21remain due and unpaid for thirty days, the operator may have
22the vehicle, watercraft, or trailer towed from the self-service
23storage facility. The operator shall not be liable for any
24damages to the vehicle, watercraft, or trailer once the tower
25takes possession of the property. Removal of any vehicle,
26watercraft, or trailer from the self-service storage facility
27shall not release the operator’s lien.
284. At any time before a sale is held under this section or
29before a vehicle, watercraft, or trailer is towed under this
30section, the occupant may pay the amount necessary to satisfy
31the lien and redeem the occupant’s personal property.
325. In the event of a sale under this section, the operator
33may satisfy the lien from the proceeds of the sale, but shall
34hold the balance, if any, for a period of ninety days for
35delivery on demand to the occupant. If the occupant does not
-5-1claim the balance within ninety days, the balance shall be paid
2to the county treasurer in the county where the self-service
3storage facility is located. The county treasurer shall hold
4the funds for a period of two years. If a claim is not made by
5the owner of the fund, then the fund shall become the property
6of the county. There shall be no further recourse by any
7person against the operator for an action pursuant to this
8section.
96. A purchaser in good faith of any personal property sold
10to satisfy a lien under this chapter takes the property free
11of any rights of persons against whom the lien was valid,
12despite noncompliance by the operator with the requirements of
13this chapter. The purchaser of a motor vehicle shall apply
14for a new title to the vehicle by the procedures outlined in
15section 321.47. For all other property which has a written
16title, the purchaser shall follow the applicable procedures for
17the property for the transfer of title by operation of law.
18No sale under this chapter extinguishes an unreleased prior
19perfected lien.
207. Notice to the occupant under subsection 2, paragraph
21“a”, shall be sent to the occupant’s last-known address by hand
22delivery, verified mail, or electronic mail. Notices sent
23by hand delivery shall be deemed delivered when the occupant
24has signed an acknowledgment of delivery. Notices sent by
25verified mail shall be deemed delivered when deposited with the
26United States postal service or private delivery service if the
27notices are properly addressed with postage prepaid. Notices
28sent by electronic mail shall be deemed delivered when an
29electronic mail is sent to the last-known address provided by
30the occupant. If the operator sends notice by electronic mail
31and receives an automated message stating that the electronic
32mail cannot be delivered, the operator shall send notice by
33hand delivery or by verified mail to the occupant’s last-known
34address with postage prepaid.
358. If the operator complies with the requirements of this
-6-1section, the operator’s liability:
2a. To the occupant, shall be limited to the net proceeds
3received from the sale of the occupant’s personal property
4less any proceeds paid to the holders of any lien or security
5interest of record on the personal property being sold.
6b. To the holders of any lien or security interest of record
7on the personal property being sold, shall be limited to the
8net proceeds received from the sale of the personal property
9subject to the holder’s lien or security interest.
10 Sec. 8. NEW SECTION. 578B.8 Exclusive care, custody, and
11control of personal property vested in occupant.
12Unless the rental agreement specifically provides otherwise
13and until a lien sale under section 578B.7, the exclusive care,
14custody, and control of all personal property stored in a
15leased space remains vested in the occupant.
16 Sec. 9. NEW SECTION. 578B.9 Supplemental nature of chapter.
17This chapter does not impair the powers of the parties to a
18rental agreement to create rights, duties, or obligations that
19do not arise from this chapter. This chapter does not impair
20or impact the rights of parties to create liens by special
21contract or agreement, nor does it affect or impair other liens
22arising at common law or in equity, or by a statute of this
23state. The rights provided to an operator by this chapter are
24in addition to all other rights provided by law to a creditor
25against a debtor.
26 Sec. 10. Section 321.20, subsection 1, unnumbered paragraph
271, Code 2019, is amended to read as follows:
28Except as provided in this chapter, an owner of a vehicle
29subject to registration shall make application to the county
30treasurer of the county of the owner’s residence, or if a
31nonresident, to the county treasurer of the county where the
32primary users of the vehicle are located, or if a lessor of
33the vehicle pursuant to chapter 321F which vehicle has a
34gross vehicle weight of less than ten thousand pounds, to the
35county treasurer of the county of the lessee’s residence,
-7-1or if a firm, association, or corporation with vehicles in
2multiple counties, the owner may make application to the county
3treasurer of the county where the primary user of the vehicle
4is located, for the registration and issuance of a certificate
5of title for the vehicle upon the appropriate form furnished
6by the department. However, upon the transfer of ownership,
7the owner of a vehicle subject to the apportioned registration
8provisions of chapter 326 shall make application for issuance
9of a certificate of title to either the department or the
10appropriate county treasurer. The owner of a vehicle purchased
11pursuant to section 578B.7 shall present documentation that
12such sale was completed in compliance with that section. The
13application shall be accompanied by a fee of twenty dollars,
14and shall bear the owner’s signature. A nonresident owner
15of two or more vehicles subject to registration may make
16application for registration and issuance of a certificate
17of title for all vehicles subject to registration to the
18county treasurer of the county where the primary user of any
19of the vehicles is located. The owner of a mobile home or
20manufactured home shall make application for a certificate
21of title under this section from the county treasurer of the
22county where the mobile home or manufactured home is located.
23The application shall contain:
24 Sec. 11. Section 321.20A, subsection 1, Code 2019, is
25amended to read as follows:
261. Notwithstanding other provisions of this chapter,
27the owner of a commercial vehicle subject to the apportioned
28registration provisions of chapter 326 may make application
29to the department or the appropriate county treasurer
30for a certificate of title. The owner of a commercial
31vehicle purchased pursuant to section 578B.7 shall present
32documentation that such sale was completed in compliance
33with that section. The application for certificate of title
34shall be made within thirty days of purchase or transfer and
35shall be accompanied by a twenty dollar title fee and the
-8-1appropriate fee for new registration. The department or the
2county treasurer shall deliver the certificate of title to the
3owner if there is no security interest. If there is a security
4interest, the title, when issued, shall be delivered to the
5first secured party. Delivery may be made using electronic
6means.
7 Sec. 12. Section 321.23, subsection 1, paragraph a, Code
82019, is amended to read as follows:
9a. If the vehicle to be registered is a specially
10constructed vehicle, reconstructed vehicle, street rod, replica
11vehicle, or foreign vehicle, such fact shall be stated in the
12application. A fee of ten dollars shall be paid by the person
13making the application upon issuance of a certificate of title
14by the county treasurer. For a specially constructed vehicle,
15reconstructed vehicle, street rod, or replica vehicle subject
16to registration, the application shall be accompanied by a
17statement from the department authorizing the motor vehicle
18to be titled and registered in this state. The owner of a
19specially constructed vehicle, reconstructed vehicle, street
20rod, replica vehicle, or foreign vehicle purchased pursuant to
21section 578B.7 shall present documentation that such sale was
22completed in compliance with that section.
23 Sec. 13. Section 321.47, subsection 1, Code 2019, is amended
24to read as follows:
251. If ownership of a vehicle is transferred by operation of
26law upon inheritance, devise or bequest, dissolution decree,
27order in bankruptcy, insolvency, replevin, foreclosure or
28execution sale, abandoned vehicle sale, or when the engine of a
29motor vehicle is replaced by another engine, or a vehicle is
30sold or transferred to satisfy an artisan’s lien as provided
31in chapter 577, a landlord’s lien as provided in chapter 570,
32a self-service storage facility lien as provided in section
33578B.7, a storage lien as provided in chapter 579, a judgment
34in an action for abandonment of a manufactured or mobile home
35as provided in chapter 555B, upon presentation of an affidavit
-9-1relating to the disposition of a valueless mobile, modular, or
2manufactured home as provided in chapter 555C, or repossession
3is had upon default in performance of the terms of a security
4agreement, the county treasurer in the transferee’s county of
5residence or, in the case of a mobile home or manufactured
6home, the county treasurer of the county where the mobile home
7or manufactured home is located, upon the surrender of the
8prior certificate of title or the manufacturer’s or importer’s
9certificate, or when that is not possible, upon presentation
10of satisfactory proof to the county treasurer of ownership
11and right of possession to the vehicle and upon payment of a
12fee of twenty dollars and the presentation of an application
13for registration and certificate of title, may issue to the
14applicant a registration card for the vehicle and a certificate
15of title to the vehicle. A person entitled to ownership of
16a vehicle under a decree of dissolution shall surrender a
17reproduction of a certified copy of the dissolution and upon
18fulfilling the other requirements of this chapter is entitled
19to a certificate of title and registration receipt issued in
20the person’s name.
21 Sec. 14. Section 462A.77, Code 2019, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 10. The buyer of a vessel sold pursuant to
24section 578B.7 shall present documentation that such sale was
25completed in compliance with that section.
26 Sec. 15. Section 462A.82, subsection 1, Code 2019, is
27amended to read as follows:
281. If ownership of a vessel is transferred by operation of
29law, such as by inheritance, order in bankruptcy, insolvency,
30replevin, or execution sale, or in compliance with section
31578B.7, the transferee, within thirty days after acquiring the
32right to possession of the vessel by operation of law, shall
33mail or deliver to the county recorder satisfactory proof of
34ownership as the county recorder requires, together with an
35application for a new certificate of title, and the required
-10-1fee. A title tax is not required on these transactions.
2 Sec. 16. REPEAL. Chapter 578A, Code 2019, is repealed.
3EXPLANATION
4The inclusion of this explanation does not constitute agreement with
5the explanation’s substance by the members of the general assembly.
6This bill enacts a new Code chapter on self-service storage
7facility liens and repeals the current Code chapter on the same
8subject.
9The bill provides definitions. Significant definitions are
10as follows. “Leased space” means individual storage space at a
11self-service storage facility which is rented to an occupant
12pursuant to rental agreement. “Occupant” means a person
13entitled to the use of leased space at a self-service storage
14under a rental agreement or the person’s successors or assigns.
15“Operator” means the owner, operator, lessor, or sublessor
16of a self-service storage facility or an agent or any other
17person authorized to manage the facility. “Operator” does
18not include a warehouse worker if the warehouse worker issues
19a warehouse receipt, bill of lading, or other document of
20title for the personal property stored. “Self-service storage
21facility” means real property designed and used for the purpose
22of renting or leasing individual storage space to occupants
23who are to have access to the space for the purpose of storing
24personal property. If an operator issues a warehouse receipt,
25bill of lading, or other document of title for the personal
26property stored, the operator and occupant are subject to Code
27chapter 554, article 7, and new Code chapter 578B does not
28apply.
29The bill provides that a leased space shall not be leased for
30a residential purpose by an operator or used by an occupant for
31a residential purpose. The bill provides that unless otherwise
32provided in a rental agreement, upon reasonable request from
33the operator, the occupant shall allow the operator to enter
34the leased space for inspection and repair. However, during
35an emergency, the operator may enter the leased space without
-11-1notice and consent from the occupant.
2The bill provides that an operator shall have a lien on
3an occupant’s personal property for delinquent rent, late
4fees, labor, or other charges incurred pursuant to the rental
5agreement and for expenses incurred for preservation, sale, or
6disposition of the personal property. The bill provides that
7the operator’s lien shall have priority over all other liens
8and security interests except those perfected prior to the time
9the personal property is brought to the self-service storage
10facility. The bill provides that the lien attaches on the date
11the personal property is brought to the self-service storage
12facility. The bill provides that if the rental agreement
13specifies a limit on the value of personal property that the
14occupant may store in the leased space, such limit shall be
15deemed to be the maximum value of the personal property in
16the occupant’s leased space. The bill provides that a rental
17agreement under the bill may provide for a reasonable late fee
18for failure to make timely payments. The bill provides that
19$20 or 20 percent of the monthly rental amount, whichever is
20greater, shall be deemed reasonable and is not a penalty.
21The bill provides that the operator and occupant may agree to
22use electronic mail to satisfy all notice requirements under
23the bill. The bill provides that the parties, if consenting to
24use electronic mail for notice, must consent to use electronic
25mail for all notices. The bill provides that if the parties
26agree, the rental agreement shall contain a section outlining
27the rights and duties for each party regarding the use of
28electronic mail.
29The bill provides that the operator has the right to deny
30the occupant access to the leased space if the occupant is in
31default if such right is set forth in the rental agreement.
32The bill provides a process for enforcement of a lien, which
33allows an operator to sell an occupant’s personal property if
34an occupant has been in default for a period of at least 30
35days and requires notices to be served on the occupant prior
-12-1to a commercially reasonable sale. Prior to the sale, the
2occupant may satisfy the lien and redeem the personal property.
3Additional details are provided in the bill.
4The bill provides that the occupant has exclusive care,
5custody, and control of personal property stored in leased
6property until a lien sale, unless a rental agreement provides
7otherwise.
8The bill does not affect the ability of the parties to a
9rental agreement to create rights, duties, and obligations
10that do not arise from the bill. Furthermore, the bill does
11not impair or impact the right of parties to create liens by
12special contract or agreement, nor does the bill affect or
13impair other liens arising at common law or in equity, or by a
14statute of this state. Additionally, the bill provides that
15the rights provided to the operator are in addition to the
16rights provided to a creditor against a debtor by law.
17The bill amends sections in Code chapter 321 (motor vehicles
18and laws of the road) and Code chapter 462A (water navigation
19regulations) to provide that the owner of a vehicle purchased
20pursuant to new Code section 578B.7 shall present documentation
21that such sale was completed in compliance with that Code
22section which provided the process for lien enforcement.
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