New York Lien Law

ARTICLE 4
LIENS ON VESSELS 
AND ENFORCEMENT THEREOF
       Section 
        80.  Liens on vessels.
        81.  Lien on vessel causing damage.
        82.  Notice of lien, when to be filed.
        83.  Duration of lien.
        84.  Assignment of lien.
        85.  Enforcement of lien.
        86.  Application for warrant.
        87.  Undertaking to accompany application.
        88.  Warrant; execution thereof.
        89.  Order to show cause; contents; service.
        90.  Notice of issuance of warrant to be published and served.
        91.  Proceedings upon return of order to show cause; trial of
               issue.
        92.  Order of sale, when made.
        93.  Sale and proceeds.
        94.  Notice of the distribution of the proceeds of sale.
        95.  Liens for which no warrants are issued.
        96.  Contested claims.
        97.  Trial of issues and appeal.
        98.  Distribution of proceeds.
        99.  Payment of uncontested claim.
        100. Distribution of surplus.
        101. Application for a discharge of warrant.
        102. Undertaking to accompany application for discharge.
        103. Discharge of warrant.
        104. Action on undertaking.
        105. Costs of proceedings.
        106. Sheriff must return warrant.
        107. Discharge of lien before issue of warrant.

  S 80. Liens on vessels. A debt which is not a lien by the maritime
law, and which amounts to fifty dollars or upwards, on a sea-going or
ocean-bound vessel, or fifteen dollars or upwards on any other vessel
shall be a lien upon such vessel, her tackle, apparel and furniture, and
shall be preferred to all other liens thereon, except mariners` wages,
if such debt is contracted by the master, owner, charterer, builder or
consignee of such ship or vessel, or by the agent of either of them,
within this state, for either of the following purposes:
  1. For work done or material or other articles furnished in this state
for or towards the building, repairing, fitting, furnishing or equipping
of such vessel.
  2. For such provisions and stores, furnished within this state, as are
fit and proper for the use of such vessel, at the time when they were
furnished.
  3. For wharfing and the expense of keeping such vessel in port, and
for the expense of employing persons to watch her.
  4. For loading or unloading such vessel, or for the advances made to
procure necessaries therefor, or for the insurance thereof.
  5. For towing or piloting such vessel, or for the insurance or premium
of insurance of or on such vessel or her freight; but no lien exists for
a debt contracted for any purpose specified in this subdivision, unless
it amounts to the sum of twenty-five dollars or more.

  S 81. Lien on vessel causing damage. When a vessel shall have
sustained damage by any other vessel through the negligence or wilful
misconduct of the person navigating such vessel, to the extent of fifty
dollars, the owner of the damaged vessel shall have a lien, unless a
lien is given therefor by maritime law, upon the vessel causing the
damage, her tackle, apparel and furniture, to the extent of such damage,
which shall be deemed a debt for the purposes of this article, and the
master, owner, agent or consignee of the damaged vessel may enforce such
lien in like manner and with like effect as in case of other liens
created by this article; but a notice of the lien must be filed in the
office of the clerk of the county in which such damage is sustained, and
proceedings to enforce the lien must be commenced within ten days after
the damage has been done, or such damage shall cease to be a lien upon
such vessel. But if such damage is sustained in either of the counties
of New York, Kings or Queens such notice shall be filed in the office of
the clerk of the city and county of New York.

  S 82. Notice of lien, when to be filed. Every debt specified in
section eighty shall cease to be a lien upon such vessel unless the
lienor shall, within ninety days after the debt becomes due, except as
hereinafter provided, file a notice of lien, containing the name of the
vessel, the name of the owner, if known, the particulars of the debt and
a statement of the amount claimed to be due from such vessel, and
verified by the lienor, his legal representative, agent or assignee, to
be true and correct. If the debt is based upon a written contract, a
copy of such contract shall be attached to such notice. The notice shall
be filed in the office of the clerk of the county in which the debt is
contracted. But if the debt was contracted in the city of New York, such
notice shall be filed in the office of the clerk of the county of New
York. Whenever any debt specified in section eighty is contracted by the
master, owner, charterer, builder or consignee of any ship or vessel
navigating the western and northwestern lakes, or any of them, or the
river Saint Lawrence, or by the agent of such master, owner, charterer,
builder or consignee, such debt shall not cease to be a lien upon such
ship or vessel if the person to whom such debt may be owing shall, by
the first Tuesday of February next succeeding the time such debt becomes
due cause to be drawn up, verified and filed, specifications of such
debt in the form and comprising the statements in this section
prescribed.

  S 83. Duration of lien. Every lien for a debt shall cease if the
vessel navigates the western or northwestern lakes, or either of them,
or the Saint Lawrence river, at the expiration of six months after the
first of January next succeeding the time when the debt was contracted,
and in case of any other vessel, at the expiration of twelve months
after the debt was contracted. If, upon the expiration of the time
herein limited in either of such cases, such vessel shall be absent from
the port at which the debt was contracted, the lien shall continue until
the expiration of thirty days after the return of such vessel to such
port.  If proceedings are instituted for the enforcement of the lien
within the time herein limited, such lien shall continue until the
termination of such proceedings.

  S 84. Assignment of lien. A lien, a notice of which has been filed
pursuant to the provisions of this article, may be assigned by a written
instrument duly acknowledged and filed in the same place where the
notice of the lien was filed. The assignment shall specify the debt upon
which the lien is founded, the date of the filing of the notice thereof
and the assignee. Such assignment and the name of the assignee shall be
entered by the clerk opposite the original entry of such lien, and after
the filing of such assignment, but not otherwise, the assignee may
enforce the lien in like manner as the assignor could have done.

  S 85. Enforcement of lien. If a lien, created by virtue of this
article, is founded upon a maritime contract, it can be enforced only by
proceedings in the courts of the United States, and in any other case,
in the courts of this state, in the manner prescribed in the following
sections of this article.

  S 86. Application for warrant. The lienor may make a written
application to a justice of the supreme court, at chambers, in the
judicial district in which the lienor resides or in a county adjoining
such district, for a warrant to enforce a lien on a vessel and to
collect the amount thereof.
  The application shall specify:
  1. By whom and when such debt was contracted and for what vessel; and
the name and residence of the owner of the vessel, if known.
  2. The items composing the debt and the amount claimed.
  3. That the debt is justly due the applicant over and above all
payments and just deductions.
  4. Any assignment or transfer of the debt which may have taken place
since it was contracted.
  5. When and where the notice of lien was filed.
  The application shall be verified in the same manner as a pleading in
a court of record.

  S 87. Undertaking to accompany application. Such application shall be
accompanied by an undertaking in the sum of at least one hundred
dollars, to be approved by such justice and filed in the office of the
clerk of the county where the notice of lien is filed, with at least one
surety, who shall be a resident and freeholder within the state, to the
effect that if it is finally adjudged that the applicant was not
entitled to the warrant, he will pay all costs which may be awarded
against him, not exceeding the amount specified in the undertaking, and
any damages sustained by reason of the seizure of the vessel under such
warrant, not to exceed fifty dollars.

  S 88. Warrant; execution thereof. Thereupon, such justice shall issue
a warrant to the sheriff of the county where such vessel may be, or,
generally to the sheriff of any county, specifying the amount of the
claim, and the names of the persons making the claim and commanding him
to seize and safely keep such ship or vessel, her tackle, apparel and
furniture, to satisfy such claim, if established to be a lien upon the
vessel according to law, and within ten days after the seizure to make
return of his proceedings under the warrant to such justice. The sheriff
shall forthwith execute such warrant, and keep the vessel, her tackle,
apparel and furniture to be disposed of according to law. In his return
the sheriff shall state also whether he has seized such vessel by virtue
of any other warrant, and if so, in whose behalf and for what sum such
warrant was issued and the time of its receipt by him.

  S 89. Order to show cause; contents; service. At the time of issuing
such warrant the justice shall grant an order to show cause, why the
vessel seized by virtue of such warrant should not be sold to satisfy
the lien specified in the application. Such order shall be returnable
not less than eight days after the service thereof, as required in this
section, before the justice and at the time and place mentioned therein.
It shall be directed to the master or other person in charge of the
vessel seized and to the owner and consignee thereof, if known. A copy
of such order and the application for the warrant shall be served
personally upon the master or other person in charge of such vessel at
the time of the execution of such warrant; and personally upon the owner
and consignee of such vessel if a resident of the state, or if not a
resident of the state, by mail addressed to such owner or consignee at
his last known place of residence, within ten days after the execution
of such warrant.

  S 90. Notice of issuance of warrant to be published and served. Within
three days after the issue of the warrant, the applicant shall cause a
notice to be published once in each week for two consecutive weeks, in a
newspaper published in the county where the vessel was seized, stating
the issuance of the warrant, the date thereof, the amount of the claim
specified therein, the name of the applicant, and the time and place of
the return of the order to show cause granted as prescribed in this
article.

  S 91. Proceedings upon return of order to show cause; trial of issue.
At the time and place mentioned in the order to show cause, the master
or other person in charge of such vessel, the owner or consignee thereof
or any other person interested therein, may apply and contest the claim
of the lienor as contained in the application for a warrant, by filing
with the justice an affidavit controverting any material allegation
contained in the notice of lien or the application of the lienor. The
issue so raised shall be tried as are other issues in a court of record,
without a jury, before the justice granting the order at a time to be
fixed by him, or they may be referred by him to a referee, to be heard
and determined.

  S 92. Order of sale, when made. 1. An order may be made by the justice
before whom the order to show cause was returnable, for the sale of the
vessel, her tackle, apparel and furniture, in the following cases:
  a. In case the master, owner, consignee or other person interested in
the vessel does not appear upon the return day and contest the claim of
the lienor, and proof is made of the service of the order to show cause
and the application and of the publication of the notice and the service
thereof, as required in this article and due proof is made of the
validity and amount of such claim;
  b. In case a trial is had of the issues raised, and it is determined
that the lien is valid and the amount claimed by the lienor or some part
thereof is due.
  2. Such order shall direct the sheriff who seized the vessel to sell
the same and her tackle, apparel and furniture, to satisfy the liens
established on the hearing, and pay the costs and expenses necessarily
incurred in the proceedings as prescribed in this article. The rights of
secured parties whose security interests have been perfected by filing
according to law, prior to the filing of the notice of lien, on account
of which the order of sale is granted, shall not be affected by the sale
of such vessel pursuant to such order.

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  S 93. Sale and proceeds. Within ten days after the receipt of the
order of sale, the sheriff, unless the order be sooner vacated or the
lien discharged, shall sell the vessel seized, her tackle, apparel and
furniture, upon notice, and in the manner prescribed by law for the sale
of personal property upon execution issued out of a court of record. He
shall make a return to the justice granting the order, of his
proceedings thereunder, and shall, after deducting his fees and expenses
in seizing, preserving, watching and selling the vessel, pay into court
the remaining proceeds of the sale.

  S 94. Notice of the distribution of the proceeds of sale. The justice
granting the order of sale, upon receiving such proceeds, shall order a
notice to be published once a week for three successive weeks in the
same newspaper in which the notice of seizure was published, requiring
all persons having liens upon the vessel under this article, and the
master, owner, agent or consignee thereof, and all other persons
interested therein, to appear before him, or a referee appointed by him,
at the time and place specified in such notice, not less than thirty nor
more than forty days from the first publication thereof to attend a
distribution of such proceeds. Such justice may appoint a referee to
make such distribution.

  S 95. Liens for which no warrants are issued. A person who has a lien
under this article against the vessel so sold, and has made no
application for a warrant thereon, may present to and file with the
justice or referee at the time and place specified in the notice of
distribution of such proceeds, a verified statement of the facts and
allegations required to be stated in the application for a warrant. And
thereupon such lien shall be determined, with the same effect as if a
warrant had been issued to enforce such lien.

  S 96. Contested claims. The master, owner, agent or consignee of the
vessel, or any person having an interest in the proceeds before final
distribution thereof, may contest any claim made against the vessel or
its proceeds, by filing with such justice a written answer, verified as
a pleading in a court of record, designating the claims contested and
controverting any material allegation of the notice of lien, application
for a warrant or statement of lien, and setting up any other matter in
defense thereto. A copy of such answer shall be served within five days
from such filing, upon the person whose claim is contested, or his
attorney.
  If the answer does not contain any matter of defense to the claim, it
may be stricken out on motion of any person who has filed a notice of
lien against the vessel.

  S 97. Trial of issues and appeal. The issues raised by any such answer
shall be tried in the same manner as issues are tried in a court of
record without a jury, before such justice at a time and place to be
fixed by him, or they may be referred by such justice to a referee, to
hear and determine. An appeal may be taken from the decision of such
justice or referee as in a civil action in a court of record. On such
appeal the decision upon the law and the facts, may be reversed,
modified, or a new trial ordered. Costs, upon appeal, shall be allowed,
as in the case of an appeal from a judgment in a court of record, and
judgment may be rendered therefor.

  S 98. Distribution of proceeds. Upon the determination of all the
claims presented, the justice or referee shall make an order of
distribution of the proceeds. The order shall direct the payment of the
claims found to be subsisting liens upon such vessel or proceeds, with
all costs, expenses and allowances, in the order of the priority of
filing the notices of such liens, as provided in this article. Such
costs, expenses and allowances shall be in the discretion of the
justice, except as otherwise provided in this article.

  S 99. Payment of uncontested claims. Any uncontested claims, entitled
to priority of payment over the claims which are contested, shall, on
motion of the parties interested, be paid with costs, in the order of
their respective priorities, without awaiting the determination of such
contest. If at any time it is made to appear that after the payment of
all prior uncontested claims and their respective costs, and after
deducting an amount sufficient to pay all prior contested claims and
costs, that there remains a surplus of proceeds applicable to the
payment of any subsequent uncontested claims, such claims may on notice
to all the parties interested be paid out of the surplus with costs,
without awaiting the determination of such contest.

  S 100. Distribution of surplus. If upon payment of all claims
established as liens against the vessel from the proceeds of its sale, a
surplus remains, it may be distributed by the court to the persons
entitled thereto, after a hearing and the publication of a notice by the
applicants for the same time and in the same manner as the notice of
seizure is required by this article to be published. Such notice shall
specify the amount of the surplus proceeds, the names of the persons
applying therefor, the name of the vessel from the sale of which the
same arose, the date of the sale and the time and place when the hearing
will be held and the distribution of the surplus made.

  S 101. Application for a discharge of warrant. The owner, consignee,
agent or master of any vessel so seized, or any person interested
therein, may at any time before the sale of the vessel under this
article, apply in person or by attorney to the justice issuing the
warrant, on at least one day`s notice to the lienor or his attorney, for
an order discharging the same on giving an undertaking therefor. Such
notice shall specify the names, places of residence and places of
business of the proposed sureties upon such undertaking.

  S 102. Undertaking to accompany application for discharge. The
application shall be accompanied by an undertaking to the lienor
executed by at least two sureties in a sum at least twice the amount
specified in the warrant, to the effect that the person making the
application for the discharge of the vessel will pay the amount of all
claims and demands which shall be established to be due to the person in
whose behalf the warrant was issued, and to have been a subsisting lien
on the vessel at the time of its issue. The undertaking when found
sufficient, must be approved by the justice to whom the application is
made as to the sufficiency of the sureties, and the lienor may examine
the sureties as to their sufficiency at such time and places as may be
fixed by such justice.

  S 103. Discharge of warrant. When such undertaking shall have been
executed, approved and delivered to the lienor and the taxed fees of the
sheriff upon the seizure and detention of the vessel have been paid, the
justice shall make an order discharging the warrant, and no further
proceedings against the vessel seized shall be had under this article
founded upon any demand secured by such undertaking.

  S 104. Action on undertaking. The undertaking may be prosecuted by
action in any court having jurisdiction thereof, at any time within
three months after its delivery, but not afterward. If, in such action
it is found that any sum is due the plaintiff which was a subsisting
lien upon the vessel at the time the notice of lien was filed, the
plaintiff shall have judgment for the recovery of the same with the
costs and disbursements of the action and the costs of the proceedings
for the seizing of the vessel and shall have execution therefor. If it
is found in such action that no such lien existed, judgment shall be
rendered against the plaintiff for the costs and disbursements of the
action and the costs of the proceedings, including the amount paid the
sheriff in the discharge of the vessel from the warrant.

  S 105. Costs of proceedings. The costs of the proceedings in addition
to the disbursements shall be: For filing notice of lien, two dollars.
For applying for and procuring a warrant if the lien is fifty dollars or
under, ten dollars; if the lien exceeds fifty dollars and is not more
than two hundred and fifty dollars, twenty dollars; if the lien exceeds
two hundred and fifty dollars, and is not more than one thousand
dollars, thirty dollars; if the lien exceeds one thousand dollars, forty
dollars. For attending proceedings upon the discharge of the warrant on
the execution of an undertaking, ten dollars.
  The sheriff shall be entitled in any such proceedings to the following
fees and expenses: For serving warrant, one dollar. For return of the
same, one dollar. The necessary sums paid by him for the expense of
keeping the vessel in custody, not exceeding two dollars and fifty cents
for each day. The sheriff shall not receive any other or greater sums
for any service rendered by him in any proceeding under this article,
nor shall he be allowed expense of custody of the vessel upon more than
one warrant at the same time. All costs, disbursements and fees shall be
verified by affidavit and adjusted by the justices issuing the warrant.

  S 106. Sheriff must return warrant. A sheriff to whom a warrant may
have been delivered pursuant to the provisions of this article, may be
compelled by an order made by the justice issuing it, to return such
warrant with his proceedings thereon and pay over moneys in his hands,
and to take any necessary steps for the safety of the vessel, pursuant
to any order for that purpose. Obedience to such order may be enforced
by attachment against the sheriff on the application of any person
interested therein.

  S 107. Discharge of lien before issue of warrant. When any notice of
lien shall have been filed under this article and no warrant has been
issued to enforce the same, any person interested in the vessel, may
apply to any justice of the supreme court for leave to discharge the
lien upon giving an undertaking therefor to the lienor. The application
shall be in writing, and shall state the amount of the lien claimed and
the grounds of the defense thereto, and the names of the persons
proposed as sureties on such undertaking, with their respective
residences and places of business. Upon presenting such application with
proof that a copy thereof, with at least five days` notice of the time
and place of presenting the same, has been served upon the lienor, such
justice may, if no just cause be shown in opposition thereto, authorize
the execution of such undertaking, which shall be to the same effect as
an undertaking required in this article upon the application to
discharge a warrant, and an action may be brought thereon in like
manner. At the time of the presentation of such application the sureties
proposed in such undertaking shall justify before such justice. When
such undertaking has been executed and approved by such justice and
delivered to the lienor, the justice shall direct the clerk with whom
the notice of lien is filed to mark the same as discharged, and it shall
cease to be a lien upon such vessel.