Reference is to the bill as introduced.
Amend the bill, as and if amended, by deleting all after the enacting words and inserting:
/ SECTION 1. Section 39-20-40 of the 1976 Code is amended to read:
"Section 39-20-40.
If an owner complies with the requirements of this code
section and Section 39-20-45, he may enforce the lien without
judicial intervention. An owner shall obtain from the occupant a
written rental agreement and a copy of the completed agreement
shall be given to the occupant upon execution. The rental
agreement must include the following language with bold type
where indicated:
'This agreement, made and entered into this
___ day of__________, 20___, by and between __________, the
owner and __________, the occupant, whose last known address is
__________. YOU HAVE THE RIGHT TO CHOOSE WHETHER YOU
WANT TO RECEIVE ANY NOTICE OF DEFAULT
BY MAIL OR AND OPT OUT OF RECEIVING NOTICES
OF DEFAULT VIA ELECTRONIC MAIL. WHEN CHOOSING ELECTRONIC
MAIL, YOU WAIVE ANY RIGHT TO RECEIVE NOTICE OF DEFAULT
PROCEEDINGS THROUGH PERSONAL SERVICE OR MAIL.
TO CHOOSE NOTICE BY MAIL TO THE ADDRESS
WRITTEN ABOVE, SIGN HERE:
_________ (Occupant signs on this line to receive notice by
mail.)
TO CHOOSE NOTICE BY ELECTRONIC MAIL, SIGN
HERE AND PRINT YOUR ELECTRONIC MAIL ADDRESS:
________(Occupant signs on this line to receive notice by
electronic mail.)
________ (If Occupant selects to receive notice by electronic
mail, on this line Occupant must print the electronic mail
address for Owner to use in sending notice.)
YOU HAVE THE RIGHT TO CHOOSE WHETHER YOU
WANT TO DESIGNATE A NEXT OF KIN OR EMERGENCY CONTACT FOR
PURPOSES OF RECEIVING ANY NOTICES OF DEFAULT. IF YOU WOULD LIKE
TO PROVIDE THIS ADDITIONAL POINT OF CONTACT PLEASE LIST THE NAME
OF THE INDIVIDUAL AS WELL AS THE EMAIL ADDRESS OR POSTAL MAILING
ADDRESS WHERE THE NOTICE SHOULD BE SENT.
CHANGES TO YOUR PREFERRED METHOD OF
RECEIVING NOTICE MUST BE SUBMITTED IN WRITING AND SENT BY FIRST
CLASS MAIL OR HAND DELIVERED TO THE OWNER.
For the consideration provided for in this
agreement, the owner agrees to let the occupant use and occupy a
space in the self-service storage facility, known as __________,
located in the City of __________, State of South Carolina, and
more particularly described as follows: Space #___. The space is
to be occupied and used for the purposes specified in this
agreement and subject to the conditions set forth beginning on
the ___ day of __________, 20___, and continuing month to month
until terminated.
'Space', as used in this agreement, means
that part of the self-service storage facility as described
above. The occupant agrees to pay the owner, as payment for the
use of the space and improvements on the space, the monthly sum
of $__________. Monthly installments are payable in advance on
or before _____day of each month, in the amount of $__________,
and a like amount of each month after that, until the
termination of this agreement.
When rent is seven calendar days past due,
or if any check given in payment is dishonored, occupant is
considered to be in default and the owner may deny access to the
personal property located in the self-storage facility. THIS IS
THE OCCUPANT'S NOTICE THAT OCCUPANT MAY BE DENIED ACCESS UPON
DEFAULT.
The space named in this agreement is to be
used by the occupant solely for the purpose of storing any
personal property belonging to the occupant. The occupant agrees
not to store any explosives or any highly inflammable goods or
any other goods in the space which would cause danger to the
space. The occupant agrees that the property will not be used
for any unlawful purposes and the occupant agrees not to commit
waste, nor alter, nor affix signs on the space, and will keep
the space in good condition during the term of this
agreement.
UPON DEFAULT BY THE OCCUPANT THE OWNER HAS
A LIEN ON ALL PERSONAL PROPERTY STORED IN OCCUPANT'S SPACE FOR
RENT IN RELATION TO THE PERSONAL PROPERTY, AND FOR ITS
PRESERVATION OR EXPENSES REASONABLY INCURRED IN ITS SALE OR
OTHER DISPOSITION PURSUANT TO THIS AGREEMENT. PERSONAL PROPERTY
STORED IN OCCUPANT'S SPACE WILL BE SOLD OR OTHERWISE DISPOSED OF
IF NO PAYMENT HAS BEEN RECEIVED FOR A CONTINUOUS FIFTY-DAY
PERIOD AFTER DEFAULT. IF ANY RENT IS SEVEN CALENDAR DAYS PAST
DUE, OR IF ANY CHECK GIVEN IN PAYMENT IS DISHONORED, THE
OCCUPANT IS IN DEFAULT FROM DATE PAYMENT WAS DUE.
IN THE EVENT OF YOUR DEFAULT, THE OWNER
OF THE FACILITY IS REQUIRED TO PUBLISH AN ADVERTISEMENT OF THE
PUBLIC SALE IN ORDER TO ATTRACT THE HIGHEST BIDDER. YOU HAVE
THE RIGHT TO PREVENT THIS ADVERTISEMENT FROM INCLUDING YOUR NAME
AS THE DEFAULTING PARTY.
_________ (Occupant signs on this line to request that
advertisement not include their name.)
For purposes of owner's lien: 'personal
property' means movable property, not affixed to land and
includes, but is not limited to, goods, merchandise, and
household items; 'last known address' means that address
provided by the occupant in the latest rental agreement or the
address provided by the occupant in a subsequent written notice
of a change of address; and 'rent' means any fees that were
agreed to by parties in the latest rental agreement and
includes, but is not limited to, fees for past due rent. The
owner's lien attaches as of the date the occupant is considered
in default.
OWNER DOES NOT PROVIDE ANY TYPE OF
INSURANCE WHICH WOULD PROTECT THE OCCUPANT'S PERSONAL PROPERTY
FROM LOSS BY FIRE, THEFT, OR ANY OTHER TYPE CASUALTY LOSS. IT IS
THE OCCUPANT'S RESPONSIBILITY TO PROVIDE SUCH INSURANCE.'"
SECTION 2. Section 39-20-45 of the 1976 Code is amended to read:
"Section 39-20-45.
(A) If the occupant has been in
default continuously for fifty days, owner may enforce its lien,
provided owner shall comply with, during the fifty-day default
period, the following procedure.
(B) When rent is
fourteen or more days past due the occupant must be notified by
written notice delivered to the occupant's last known address
(1) in person, (2) by personal delivery service as provided by
court rule, (3) by first-class mail with a certificate of
mailing, (4) by certified mail, or (5) by electronic mail.
(C) Owner's notice to
occupant shall include:
(1)
a brief and general description of what is believed to
constitute the personal property contained in the storage
unit;
(2)
a statement of the owner's claim, showing the sum due at
the time of the notice and the date the sum became due;
(3)
a demand for payment within a specified time not less than
fourteen days after delivery of notice;
(4)
a conspicuous statement that, unless the claim is paid
within the time stated in the notice, the personal property will
be advertised for sale or disposed of as provided by law and
will be sold or otherwise disposed of after a specified
date;
(5)
a conspicuous statement that partial payment of the
owner's claim does not stop or delay the owner's right to
proceed with the sale or disposition of the property; and
(6)
a conspicuous statement notifying the occupant of denial
of access to the personal property and provide the name, street
address, and telephone number of the owner or its designated
agent, whom the occupant may contact to respond to this
notice.
(D) Any notice given
pursuant to this section is presumed delivered when it is (1)
properly addressed to the last known address, and (2) either
deposited with the United States Postal Service with postage
prepaid for first class mail with a certificate of mailing or
certified mail or sent by electronic mail from which a
confirmation of receipt is received.
(E) After the
expiration of the fifty-day default period, the owner shall
publish an advertisement of the public sale to the highest
bidder once a week for two consecutive weeks in a newspaper of
general circulation where the self-service storage facility is
located or in any other commercially reasonable manner
resulting in a commercially reasonable sale. For purposes of
this chapter, 'commercially reasonable sale' includes, but is
not limited to, the offering of property to an audience of
bidders through an online, publicly accessible auction website.
An advertisement is considered to be made in a commercially
reasonable manner if at least three independent bidders attend
the sale at the time and place as advertised. In the event that
the public sale is held through a publicly available Internet
website, the attendance of three independent bidders shall be
evidenced by at least three independent potential bidders
visiting or viewing the publicly accessible URL or website
address during the advertised timeframe of the sale.
(F) The advertisement
shall include:
(1)
a brief and general description of what is believed to
constitute the personal property, contained in the storage
unit;
(2)
the address of the self-storage facility or the address
where the self-contained storage unit is located and the name of
the occupant; and
(3)
the time, place, and manner of the public sale or other
disposition. In the event that a public sale is planned to
be held through a publicly available Internet website, the
advertisement must include the URL/website address, which must
constitute the 'place' for purposes of fulfilling this
requirement; and
(4)
the advertisement shall include only the name of
the occupant if the rental agreement indicates that the occupant
did not wish to exercise their right to prevent the inclusion of
their name.
(G) If the owner
determines that the property in the storage space has a sale
value of less than three hundred dollars, the owner, at the
owner's sole discretion, may hold the property for sixty days
from the date notice was provided pursuant to this section. If
the occupant fails to claim the goods and pay the rent owed
during that period, the owner may destroy or dispose of the
property without further notice to occupant and occupant's debt
shall be extinguished and the owner shall have no liability to
the occupant or any other person for the personal property.
(H) If the property
upon which the lien is claimed is a motor vehicle or a
watercraft and rent and other charges related to the property
remain unpaid or unsatisfied for sixty days following the
maturity of the obligation to pay rent, the lienor may have the
property towed by a towing company licensed pursuant to law. If
a motor vehicle is towed as authorized in this subsection, the
lienor shall not be liable for the motor vehicle or any damages
to the motor vehicle once the tower takes possession of the
property.
(I) If no one purchases
the property at the public sale and if the owner has complied
with the foregoing procedures, the owner may otherwise dispose
of the property and shall notify the occupant of the action
taken. Any sale or disposition of the personal property must be
held either through a publicly accessible Internet website
or at the self-service storage facility or at the nearest
suitable place to where the personal property is held or
stored.
(J) Before any sale or
other disposition of personal property pursuant to this
agreement, the occupant may pay the amount necessary to satisfy
the lien and the reasonable expenses incurred, and by that
action redeem the personal property and after that the owner
shall have no liability to any person with respect to the
personal property. A partial payment of rent shall not satisfy
the lien, stop or delay the owner's right to proceed with a sale
or disposition of the occupant's property as provided in this
section unless the owner agrees to the stop or delay in a
writing signed by the owner.
(K) A purchaser in good
faith of the personal property sold to satisfy owner's lien
takes the property subject to any other liens or security
interests which are perfected and recorded or liens by any
lienholder with an interest in the property of whom the owner
has knowledge either through the disclosure provision of the
rental agreement or through other written notice.
(L) In the event of a
sale, the owner may satisfy his lien from the proceeds of the
sale. The owner shall hold the balance of the proceeds, if any,
for the occupant or any notified, secured interest holder. If
not claimed within two years of the date of sale, the balance of
the proceeds must be disposed of in accordance with Chapter 18,
Title 27. In no event may the owner's liability exceed the
proceeds of the sale."
SECTION 3. This act takes effect upon approval by the Governor. /
Renumber sections to conform.
Amend title to conform.