New York Lien Law

ARTICLE 6-A
MOLD LIENS

Section 150. Definitions.
        151. Creation of a lien.
        152. Enforcement.
        153. Period of cure.
        154. Sale procedure for mold lien property.

  S 150. Definitions. For the purposes of this article the following
terms shall have the following meanings:
  1. "Customer" means any individual or entity who causes a molder to
fabricate, cast or otherwise make a die, mold, form, or pattern or who
provides a molder with a die, mold, form, or pattern to manufacture,
assemble, cast, fabricate or otherwise make a product or products for a
customer.
  2. "Molder" means any individual or entity who fabricates, casts or
otherwise makes or uses a die, mold, form, or pattern for the purpose of
manufacturing, assembling, casting, fabricating, or otherwise making a
product or products for a customer. A "molder" includes, but is not
limited to, a tool or die maker.

  S 151. Creation of a lien. Molders shall have a lien, dependent on
possession, on all dies, molds, forms or patterns in their hands
belonging to a customer, for the balance due them from such customer for
any manufacturing or fabrication work, and in the value of all material
related to such work. Such lien shall not have priority over any
security interest in the die, mold, form or pattern that is perfected at
the time the molder acquires the lien. The molder may retain possession
of the die, mold, form or pattern until the charges are paid.

  S 152. Enforcement. Before enforcing such lien, notice in writing
shall be given to the customer, and to the holder of a perfected
security interest either delivered personally or sent by registered mail
to the last-known address of the customer or holder of a perfected
security interest. This notice shall state that a lien is claimed for
the damages set forth in or attached to such writing for manufacturing
or fabrication work contracted and performed for the customer. Notice to
the customer shall also include a demand for payment.

  S 153. Period of cure. If the molder has not been paid the amount due
within sixty days after the notice has been received by the customer as
provided in section one hundred fifty-two of this article, the molder
may sell the die, mold, form or pattern at a public auction.

  S 154. Sale procedure for mold lien property. 1. Before a molder may
sell the die, mold, form or pattern the molder shall notify the customer
and the holder of a perfected security interest by registered mail,
return receipt requested. This notice shall include the following
information:
  (a) The molder`s intention to sell the die, mold, form or pattern
thirty days after the customer`s receipt of the notice.
  (b) A description of the die, mold, form or pattern to be sold.
  (c) The time and place of the sale.
  (d) An itemized statement for the amount due.
  (e) The notice shall state that if a customer disputes the amount
claimed under the lien, the customer is entitled to bring a proceeding
hereunder within ten days of the service of the notice of sale to
establish the amount of the lien. The proceeding may be brought in any
court which would have jurisdiction to render a judgment for a sum equal
to the amount of the lien.
  2. If there is not a return of the receipt of the mailing or if the
postal service returns the notice as being nondeliverable, the molder
shall publish notice of the molder`s intention to sell the die, mold,
form or pattern in a newspaper of general circulation in the customer`s
last known place of business. The notice shall include a description of
the die, mold, form or pattern.
  3. If the sale is for a sum greater than the amount of the lien, the
excess shall be paid to any other lienholder known to the molder at the
time of the sale and any remainder to the customer, if the customer`s
address is known, or the state treasurer for deposit in the general fund
if the customer`s address is unknown to the molder at the time of the
sale.
  4. A sale shall not be made under this section if it would be a
violation of any right of the customer under federal patent or copyright
law.

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