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Kentucky Lien Law

May 20, 2015
Includes enactments through the 2017 Regular Session The KRS database was last updated on 10/20/2017

Kentucky State

  • Population: 4,413,457 (26th in US)
  • Capital: Frankfort
  • Counties: 120
  • Nickname: Bluegrass State       

The lien law, code or statute of the State of Kentucky use for information purposes only and is not intended nor to replace professional legal consultation.


Kentucky Self-Service Storage Act of 1988



Title XXIX – COMMERCE AND TRADE
CHAPTER 359. WAREHOUSES AND WAREHOUSEMEN
Self-Service Storage Facilities

       
Table of Contents:

359.200 Definitions for KRS 359.210 to 359.250.
359.210 Prohibition on using leased spaces for residential purposes.
359.215 Late fees and other reasonable expense incurred in rent collection or lien enforcement.
359.220 Lien on stored property held by operator of facility -- Notice provisions in rental agreement.
359.230 Enforcement of lien against occupant in default -- Requirements prior to conduct of sale -- Redemption by occupant -- Application of proceeds -- Rights of purchaser -- Limitation on liability of operator -- Stored personal property value limit -- Alternative to sale of motor vehicle subject of default of more than sixty days.
359.240 Pre-existing rental agreements unaffected.
359.250 Short title.

359.990. Penalties.


359.200 Definitions for KRS 359.210 to 359.250.


As used in KRS 359.210 to 359.250, unless the context clearly requires otherwise:

   (1) "Self-service storage facility" means any real property used for renting or leasing individual storage spaces in which the occupants themselves customarily store and remove their own personal property on a "self-service" basis;

    (2) "Rental agreement" means any written agreement that establishes or modifies the terms, conditions, or rules concerning the use and occupancy of a self-service storage facility or self-contained storage unit;

   (3) "Leased space" means the individual storage space at a self-service storage facility or in a self-contained storage unit which is rented to an occupant pursuant to a rental agreement;

   (4) "Occupant" means a person, a sublessee, successor, or assign, entitled to the use of a leased space at a self-service storage facility or in a self-contained storage unit under a rental agreement;

   (5) "Operator" means the owner, operator, lessor, or sublessor of a self-service storage facility or a self-contained storage unit, or an agent or any other person authorized to manage the facility or storage unit, but does not mean a warehouseman, unless the operator issues a warehouse receipt, bill of lading, or other document of title for the personal property stored;

   (6) "Personal property" means movable property located within leased space at a self-service storage facility or in a self-contained storage unit and includes but  is not limited to goods, wares, merchandise, motor vehicles, watercraft, and household items and furnishings;

   (7) "Default" means the failure to perform on time any obligation or duty set forth in the rental agreement;

   (8) "Last known address" means that postal address or electronic mail address provided by the occupant in the latest rental agreement or the postal address  or electronic mail address provided by the occupant in a subsequent written notice of a change of address;

   (9) "Self-contained storage unit" means any unit, including but not limited to a trailer, box, or other shipping container, which is leased by an occupant  primarily for use as a storage space, whether the unit is located at a  self-service storage facility or at another location designated by the occupant;

   (10) "Verified electronic mail" means an electronic message or an executable  program or computer file that is transmitted between two (2) or more computers or electronic terminals that the sender has verified by any reasonable means as being a working electronic mail address. The term includes electronic messages that are transmitted within or between computer networks; and

   (11) "Verified mail" means any method of mailing that is offered by the United States Postal Service or private delivery service that provides evidence of mailing.

Effective: July 15, 2014
History: Amended 2014 Ky. Acts ch. 67, sec. 1, effective July 15, 2014. -Amended 2008 Ky. Acts ch. 3, sec. 1, effective July 15, 2008. -- Created 1988  Ky. Acts ch. 360, sec. 1, effective July 15, 1988.



359.210 Prohibition on using leased spaces for residential purposes.

    (1) An operator shall not knowingly permit a leased space at a self-service storage facility or in a self-contained storage unit to be used for residential purposes.

   (2) An occupant shall not use a leased space at a self-service storage facility or in a self-contained storage unit for residential purposes.

Eflective:Ju|y 15, 2008
History: Amended 2008 Ky. Acts ch. 3, sec. 2, effective July 15, 2008. —— Created
1988 Ky. Acts ch. 360, sec. 2, effective July 15, 1988.



359.215 Late fees and other reasonable expense incurred in rent collection or lien enforcement.

   (1) A reasonable late fee may be imposed and collected by an owner for each service period that an occupant does not pay rent when due under a rental agreement, provided that the due date for the rental payment is not earlier than the day before the first day of the service period to which the rental payment applies. No late payment fee shall be assessed unless the rental fee remains unpaid for at least five (5) days after the date specified within the rental agreement for the payment of the rental fee.

   (2) No late fee may be collected pursuant to this section unless the amount of the fee and the conditions for imposing the fee are stated in the rental agreement or in an addendum to that agreement.

   (3) For the purposes of this section, a late fee of twenty dollars ($20) or twenty percent (20%) of the rental fee for each month an occupant does not pay rent, whichever is greater, is deemed reasonable and does not constitute a penalty.

   (4) Any reasonable expense incurred as a result of rent collection or lien enforcement by an owner may be charged to the occupant in addition to the late fees permitted by this section.

Effective:July 15, 2014
History: Created 2014 Ky. Acts ch. 67, sec. 3, effective July 15, 2014.



359.220 Lien on stored property held by operator of facility -- Notice provisions in rental agreement.


    (1) provisions in rental agreement.

The operator of a self-service storage facility or self-contained storage unit shall have a lien on all personal property stored within each leased space for  rent, labor, or other charges, and for expenses reasonably incurred in its sale, as provided in KRS 359.200 to 359.250.

The rental agreement shall contain a statement, in bold type, advising the occupant

     (a) Of the existence of the lien; and

     (b) That property stored in the leased space may be sold to satisfy the lien if the occupant is in default.

Effective:Ju|y 15, 2008
History: Amended 2008 Ky. Acts ch. 3, sec. 3, effective July 15, 2008. —— Created
1988 Ky. Acts ch. 360, sec. 3, effective July 15, 1988.


359.230 Enforcement of lien against occupant in default -- Requirements prior to conduct of sale -- Redemption by occupant -- Application of proceeds -- Rights of purchaser -- Limitation on liability of operator -- Stored personal property value limit -- Alternative to sale of motor vehicle subject of default of more than sixty days.

   (1) (a)  If the occupant is in default for a period of more than forty-five (45) days, the operator may enforce a lien by selling the property stored in the leased space at a public or private sale, for cash.

        (b) Proceeds shall then be applied to satisfy the lien, with any surplus disbursed as provided in subsection (5) of this section.

   (2) Before conducting a sale under subsection (1) of this section, the operator shall:

       (a) Notify the occupant of the default by regular or verified electronic mail at the occupant`s last known address;

       (b) Send a second notice of default by verified mail or verified electronic mail to the occupant at the occupant`s last known address which includes:

            1. A statement that the contents of the occupant`s leased space are subject to the operator`s lien;
 
           2. A statement of the operator`s claim, indicating the charges due on the date of the notice, the amount of any additional charges which shall become due before the date of sale, and the date those additional charges shall become due;

          3. A demand for payment of the charges due within a specified time, not less than fourteen (14) days after the date of the notice;

          4. A statement that unless the claim is paid within the time stated, the contents of the occupant`s leased space shall be sold at a specified time and place; and

          5. The name, street address, and telephone number of the operator, or his or her designated agent, whom the occupant may contact to respond to the notice; and  (c) At least three (3) days before the sale, advertise the time, place, and  terms of the sale in a newspaper of general circulation in the jurisdiction where the sale is to be held.

   (3) At any time before a sale under this section, the occupant may pay the amount necessary to satisfy the lien and redeem the occupant`s personal property.

   (4) The sale under this section shall be held at the self-service storage facility, the location of the self-contained storage unit where the personal property is stored, or a publicly accessible Web site.

   (5) If a sale is held under this section, the operator shall:

       (a) Satisfy the lien from the proceeds of the sale;

       (b) Hold the balance, if any, for delivery to any other recorded lienholders who present claims within sixty (60) days. Notwithstanding Article 9 of  KRS Chapter 355, claims shall be satisfied on a first come first served basis; and

      (c) Deliver, upon expiration of sixty (60) days, the balance of any remaining proceeds to the occupant.

   (6) A purchaser in good faith of any personal property sold under KRS 359.200 to 359.250 takes the property free and clear of any rights of:

       (a) Persons against whom the lien was valid; and

       (b) Other lienholders.

   (7) If the operator complies with the provisions of KRS 359.200 to 359.250, theoperator`s liability:

       (a) To the occupant shall be limited to the net proceeds received from the sale of the personal property;

       (b) To other lienholders shall be limited to the net proceeds received from the sale of any personal property covered by that other lien; and

       (c) To the occupant or valid lienholders shall be relieved upon full distribution of proceeds in accordance with the provisions of KRS 359.200 to 359.250.

   (8) If an occupant is in default, the operator may deny the occupant access to theleased space.

   (9) (a) Unless otherwise specifically provided, all notices required by KRS 359.200 to 359.250 shall be sent by verified mail or verified electronic mail.

        (b)  1. Notices sent to the operator shall be sent to the operator`s principal office, as listed on the rental agreement.
     
              2. Notices to the occupant shall be sent to the occupant at the occupant`s last known address.

       (c) Notices shall be deemed delivered when deposited with the United States Postal Service, properly addressed as provided in paragraph (b) of this subsection, with postage paid, or sent by verified electronic mail.

   (10) Provided, however, unless the rental agreement specifically provides otherwise and until a lien sale under KRS 359.200 to 359.250, the exclusive care, custody, and control of all personal property stored in the leased space shall remain vested in the occupant.

   (11) If the rental agreement specifies a limit on the value of the personal property that may be stored in the occupant`s leased space, the limit shall be deemed to be the maximum value of the stored personal property.

   (12) If the occupant is in default for more than sixty (60) days and the personal property stored in the leased space is a motor vehicle as defined in KRS  376.268, the operator may, in lieu of a sale authorized in this chapter, have the vehicle or watercraft towed or removed from the self-service storage facility, and the towing company shall execute the notice provisions as specified in KRS 376.275.

Effective:July 15, 2014
History: Amended 2014 Ky. Acts ch. 67, sec. 2, effective July 15, 2014. -Amended 2008 Ky. Acts ch. 3, sec. 4, effective July 15, 2008. -- Created 1988
Ky. Acts ch. 360, sec. 4, effective July 15, 1988.
Legislative Research Commission Note (9/20/96). A reference to "this Act" in subsection (7) of this statute was overlooked in the initial codification of this statute and has been changed to the range of statutes created by 1988 Ky. Acts ch. 360 under KRS 7.136(1)(f).



359.240 Pre-existing rental agreements unaffected.


All rental agreements, entered into before July 15, 1988, which have not been extended or renewed after July 15, 1988, shall remain valid and may be enforced or terminated in accordance with their terms or as permitted by any other statute or law of this state.

Effective:July 15, 1988
History: Created 1988 Ky. Acts ch. 360, sec. 5, effective July 15, 1988.



359.250 Short title.

KRS 359.200 to 359.250 shall be known as the "Kentucky Self-Service Storage Act of 1988."

Effective:July 15, 1988
History: Created 1988 Ky. Acts ch. 360, sec. 6, effective July 15, 1988.


359.990. Penalties.

   (1) Any person who violates any of the provisions of KRS 359.020 or 359.030 shall be guilty of a Class D felony.

   (2) Any person who violates any of the provisions of subsection (1) of KRS 359.050 shall be guilty of a violation.

   (3) Any person who violates any of the provisions of subsection (2) of KRS 359.090 shall be guilty of a Class A misdemeanor.

Effective: July 14, 1992
History: Amended 1992 Ky. Acts ch. 463, sec. 40, effective July 14, 1992. -Recodified 1942 Ky. Acts ch. 208, sec.
1, effective October 1, 1942, from Ky.  Stat. secs. 4775, 4784, 4796.



Kentucky State Seal
Kentucky State Seal


Disclaimer: The lien law, code or statute collected heretofore and all text is copyrighted by the state. Please check the official website of the State of Kentucky for any revisions or repeals.


Southern States:  West Virginia, Maryland, Delaware, Kentucky, Virginia, Arkansas, Tennessee, North Carolina, Louisiana, Mississippi, Alabama, Florida, Georgia and South Carolina.

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