2023 Code of Alabama › Title 8 - Commercial Law and Consumer Protection. › Chapter 15 - Public Warehouses. › Article 2A - Self-Service Storage Facilities Act. › Section 8-15-46 - Default by Occupant - Enforcement of Lien; Sale of Personal Property.

Section 8-15-46
Default by occupant - Enforcement of lien; sale of personal property.
(a) If an occupant is in default for a period of more than 30 days, the operator may enforce the lien granted in Section 8-15-44 by selling the stored personal property of the occupant. Sale of the personal property of an occupant may be by public or private proceedings. The personal property may be sold as a unit or in parcels, by way of one or more contracts, at any time or place, with bids or offers sealed or open, and on any terms as long as the sale is a commercially reasonable sale. The operator may otherwise dispose of any property which has no commercial value.
(b) Before conducting a sale under this section, the operator shall do all of the following:
(1) At least 20 days before the sale, send notice of default to the occupant and any lienholder identified by the occupant in the rental agreement by verified mail or electronic mail pursuant to subsection (h). The notice of default shall include:
a. A statement that the contents of the leased space are subject to the operator's lien.
b. 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 the additional charges shall become due.
c. A demand for payment of the charges due within a specified time, which shall not be less than 10 days after the date of the notice.
d. A statement that unless the claim is paid within the time stated, the contents of the leased space will be sold or otherwise disposed of after a specified time.
e. The name, street address, and telephone number of the operator or a designated agent whom the occupant may contact to respond to the notice.
(2) At least seven days before the sale, an advertisement containing the time, place, and terms of the sale shall be published once in a newspaper of general circulation in the county where the self-service storage facility is located. A single advertisement listing multiple sales in a newspaper of general circulation in the county shall suffice. If no newspaper of general circulation is located in the county, or if the operator determines, based on the previous experience of the operator, that the contents of the leased space have a value of five hundred dollars ($500) or less, then an advertisement in any commercially reasonable manner shall suffice. The manner of advertisement is deemed commercially reasonable if it is likely to attract at least three independent bidders to attend or view the sale in person or online at the time and place advertised.
(c) The operator may buy the personal property of the occupant at any public sale held pursuant to this section.
(d) If the personal property subject to the operator's lien is a vehicle, watercraft, or trailer and rent and other charges remain unpaid for 60 days, the operator may have the vehicle, watercraft, or trailer towed from the self-service storage facility. The operator shall not be liable for any damages to the vehicle, watercraft, or trailer once a licensed and bonded tower takes possession of the property. Removal of any vehicle, watercraft, or trailer from the self-service storage facility shall not release the operator's lien. The sale of a watercraft shall comply with Section 33-5A-4. Any provision of this article to the contrary notwithstanding, unclaimed motor vehicles shall be reported in accordance with Section 32-8-84 and abandoned motor vehicles shall be sold in accordance with Chapter 13 of Title 32.
(e) At any time before a sale is held under this section or before a vehicle, watercraft, or trailer is towed under this section, the occupant may pay the amount necessary to satisfy the lien and redeem the personal property. The operator shall have no liability to any person with respect to personal property redeemed pursuant to this subsection.
(f) In the event of a sale, the operator may satisfy the lien from the proceeds of the sale. The lien rights of secured lienholders are automatically transferred to the remaining proceeds of the sale, if any. If the sale is a commercially reasonable sale, the operator shall not be subject to any liability for a deficiency if the amount realized at the sale does not satisfy any secured lien, but shall hold the balance, if any, for delivery to the occupant or any secured lienholder, upon demand. If the occupant or secured lienholder, if any, does not claim the balance of the proceeds within one year after the date of sale, the balance shall become the property of the operator without further recourse by the occupant or secured lienholder.
(g) A purchaser in good faith of any personal property sold pursuant to this section to satisfy the lien granted in Section 8-15-44 takes the property free and clear of any rights of persons against whom the lien was valid, despite noncompliance by the operator with the requirements of this section. If the requirements of this article are not satisfied, if the sale of the personal property is not in conformity with the notice of sale, or if there is a willful violation of this article, nothing in this section affects the rights and liabilities of the owner, occupant, or any other person.
(h) Notices to the occupant under subdivision (b)(1) shall be sent to the last known address of the occupant by verified mail or electronic mail. Notices sent by verified mail shall be deemed delivered when deposited with the United States Postal Service or private delivery service if they are properly addressed with postage prepaid. Notices sent by electronic mail shall be deemed delivered when an electronic message is sent to the last known address provided by the occupant. If the operator sends notice by electronic mail and receives an automated message stating that the electronic mail cannot be delivered, the operator shall send notice by verified mail to the last known address of the occupant with postage prepaid.
(i) If the operator complies with the requirements of this section, the liability of the operator:
(1) To the occupant, shall be limited to the net proceeds received from the sale of the personal property of the occupant less any proceeds paid to the holders of any lien or security interest of record on the personal property being sold.
(2) To the holders of any lien or security interest of record on the personal property being sold, shall be limited to the net proceeds received from the sale of any personal property covered by the lien or security interest of the holder.
(Act 2021-183, §1.)