40-11-5
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40-11-5.
All
liens acquired under Code Section 40-11-4 shall be foreclosed as follows:
(1)
Any proceeding to foreclose a lien on an abandoned motor vehicle must be
instituted within one year from the time the lien is recorded or is asserted by
retention;
(2)
The person desiring to foreclose a lien on an abandoned motor vehicle shall, by
certified or registered mail or statutory overnight delivery, make a demand upon
the owners for the payment of the reasonable fees for removal and storage plus
the costs of any notification or advertisement. Such written demand shall
include an itemized statement of all charges and may be made concurrent with the
notice required by subsection (f) of Code Section 40-11-2. Such demand shall be
made on a form prescribed by rule or regulation of the Department of Revenue and
shall notify the owner of his or her right to a judicial hearing to determine
the validity of the lien. The demand shall further state that failure to return
the written demand to the lien claimant, file with a court of competent
jurisdiction a petition for a judicial hearing, and provide the lien claimant
with a copy of such petition, all within ten days of delivery of the lien
claimant́s
written demand, shall effect a waiver of the
owneŕs
right to such a hearing prior to sale. The form shall also provide the suspected
owner with the option of disclaiming any ownership of the vehicle, and his or
her affidavit to that effect shall control over anything contrary in the records
of the Department of Revenue. No such written demand shall be required if the
identity of the owner cannot be ascertained and the notice requirements of
subsection (g) of Code Section 40-11-2 have been complied with;
(3)(A)
If, within ten days of delivery to the appropriate address of the written demand
required by paragraph (2) of this Code section, the owner of the abandoned motor
vehicle fails to pay or file with the court a petition for a judicial hearing
with a copy to the lien claimant in accordance with the notice provided pursuant
to paragraph (2) of this Code section, or if the owner of the abandoned motor
vehicle cannot be ascertained, the person removing or storing the abandoned
motor vehicle may foreclose such lien. The person asserting such lien may move
to foreclose by making an affidavit to a court of competent jurisdiction, on a
form prescribed by rule or regulation of the Department of Revenue, showing all
facts necessary to constitute such lien and the amount claimed to be due. Such
affidavit shall aver that the notice requirements of Code Section 40-11-2 have
been complied with, and such affidavit shall also aver that a demand for payment
in accordance with paragraph (2) of this Code section has been made without
satisfaction or without a timely filing of a petition for a judicial hearing or
that the identity of the owner cannot be ascertained. The person foreclosing
shall verify the statement by oath or affirmation and shall affix his or her
signature thereto.
(B)
Regardless of the court in which the affidavit required by this paragraph is
filed, the fee for filing such affidavit shall be $10.00 per motor vehicle upon
which a lien is asserted;
(4)
If no timely petition for a hearing has been filed with a court of competent
jurisdiction, then, upon such
affidavit́s
being filed by the lien claimant pursuant to paragraph (3) of this Code section,
the lien will conclusively be deemed a valid one and foreclosure thereof
allowed;
(5)
If a petition for a hearing is filed with a court of competent jurisdiction
within ten days after delivery of the lien
claimant́s
demand, a copy of which demand shall be attached to the petition, the court
shall set such a hearing within ten days of filing of the petition;
(6)
Upon the filing of such petition by an owner, neither the lien claimant nor the
court may sell the motor vehicle, although possession of the motor vehicle may
be retained by the lien claimant or obtained by the court in accordance with the
order of the court which sets the date for the hearing;
(7)
If, after a full hearing, the court finds that a valid debt exists, then the
court shall authorize foreclosure upon and sale of the motor vehicle subject to
the lien to satisfy the debt if such debt is not otherwise immediately paid;
(8)
If the court finds the actions of the person asserting the lien in retaining
possession of the motor vehicle were not taken in good faith, then the court, in
its discretion, may award damages to the owner, any party which has been
deprived of the rightful use of the vehicle, or the lessee due to the
deprivation of the use of the motor vehicle; and
(9)
If an affidavit meeting the requirements of paragraph (3) of this Code section
is filed and no petition for a hearing is timely filed, or if, after a full
hearing, the court determines that a valid debt exists, the court shall issue an
order authorizing the sale of such motor vehicle. However, the holder of a
security interest in or a lien on the vehicle, other than the holder of a lien
created by Code Section 40-11-4, shall have the right, in the order of priority
of such security interest or lien, to pay the debt and court costs. If the
holder of a security interest or lien does so pay the debt and court costs, he
or she shall have the right to possession of the vehicle, and his or her
security interest in or lien on such vehicle shall be increased by the amount so
paid. A court order shall be issued to this effect, and in this instance there
shall not be a sale of the vehicle.