New York Lien Law
ARTICLE 9
ENFORCEMENT OF LIENS
ON PERSONAL PROPERTY
Section
200. Sale of personal property to satisfy a lien.
201. Notice of sale.
201-a. Proceeding to determine validity of liens.
202. Sale to be advertised; exception.
202-a. Sale of a security.
202-b. Pledgee may buy at public sale.
203. Redemption before sale.
204. Disposition of proceeds.
205. Remedy not exclusive.
206. Enforcement by action; when and in what courts; procedure
in action to foreclose real property mortgage
applicable in actions to foreclose a mortgage or other
lien.
207. Warrant to seize chattel; proceedings thereupon.
208. Judgment.
209. Action in inferior court.
210. Application.
211. Arrears/past due support.
S 200. Sale of personal property to satisfy a lien. A lien against
personal property, other than the lien of a warehouseman pursuant to
section 7-209 of the uniform commercial code, the lien of a carrier
pursuant to section 7-307 of the uniform commercial code, a security
interest in goods and the lien of a keeper of a hotel, apartment hotel,
inn, boarding-house or lodging-house, except an immigrant lodging-house,
if in the legal possession of the lienor, may be satisfied by the sale
of such property according to the provisions of this article.
S 201. Notice of sale. Before such sale is held the lienor shall serve
a notice upon the owner with due diligence within such county, if such
owner can be found where such lien arose, if not then to the person for
whose account the same is then held personally, provided such service
can be made with due diligence within the county where such lien arose,
but if such owner or person cannot with due diligence be found within
such county, or if the property affected, other than a security, is of a
value of less than one hundred dollars, then such notice shall be served
by mailing it to the owner at his last known place of residence, or to
his last known post-office address or if the owner`s place of residence
or post-office address is not known, then to the last known place of
residence or last known post-office address of the person for whose
account the same is then held personally. Any notice permitted herein to
be served by mail shall be sent by certified mail, or by first-class
mail if the lienor has obtained from the United States post office
department a certificate of mailing. A like notice shall be served in
the same way upon any person who shall have given to the lienor notice
of an interest in the property subject to the lien and upon any person
who has perfected a security interest in the property by filing a
financing statement pursuant to the provisions of the uniform commercial
code or who is listed as lienholder upon the certificate of title of the
property pursuant to the provisions of the vehicle and traffic law. Such
notice shall contain a statement of the following facts:
1. The nature of the debt or the agreement under which the lien arose,
with an itemized statement of the claim and the time when due;
2. A brief description of the personal property against which the lien
exists;
3. The estimated value of such property;
4. The amount of such lien, at the date of the notice.
It shall also require such owner or any such person to pay the amount
of such lien, on or before a day mentioned therein, not less than ten
days from the service thereof, and shall state the time when and place
where such property will be sold, if such amount is not paid; and it
shall state that the owner or any such person is entitled to bring a
proceeding under section two hundred one-a of this article within ten
days of the service of notice if he disputes the validity of the lien or
the amount claimed. If the agreement on which the lien is based provides
for the continuous care of property the lienor is also entitled to
receive all sums which may accrue under the agreement, subsequent to the
notice and prior to payment or a sale of the property; and the notice
shall contain a statement that such additional sum is demanded. Such
notice shall be verified by the lienor to the effect that the lien upon
such property is valid, that the debt upon which such lien is founded is
due and has not been paid and that the facts stated in such notice are
true to the best of his knowledge and belief.
S 201-a. Proceeding to determine validity of liens. Within ten days
after service of the notice of sale, the owner or any person entitled to
notice pursuant to section two hundred one of this article may commence
a special proceeding to determine the validity of the lien. The special
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. If the
owner or any such person shall show that the lienor is not entitled to
claim a lien in the property, or that all or part of the amount claimed
by the lienor has not been properly charged to the account of such owner
or such person, or, as the case may be, that all or part of such amount
exceeds the fair and reasonable value of the services performed by the
lienor, the court shall direct the entry of judgment cancelling the lien
or reducing the amount claimed thereunder accordingly. If the lienor
shall establish the validity of the lien, in whole or in part, the
judgment shall fix the amount thereof, and shall provide that the sale
may proceed upon the expiration of five days after service of a copy of
the judgment together with notice of entry thereof upon the owner or
such person, unless the property is redeemed prior thereto pursuant to
section two hundred three of this article. If the lien is cancelled, the
judgment shall provide that, upon service of a copy of the judgment
together with notice of entry thereof upon the lienor, the owner or such
person shall be entitled to possession of the property.
S 202. Sale to be advertised; exception. 1. Each sale of personal
property of a value of one hundred dollars or more, or of any security,
to satisfy a lien thereon shall be at public auction to the highest
bidder, and shall be held in the city or town where the lien was
acquired. After the time for the payment of the amount of the lien
specified in the notice required to be served by section two hundred one
or two hundred one-a of this article, notice of such sale shall be
published once a week, for two consecutive weeks, in a newspaper
published in the town or city where such sale is to be held, and such
sale shall be held not less than fifteen days from the first
publication; if there be no newspaper published in such town, such
notice shall be posted at least ten days before such sale in not less
than six conspicuous places therein. Such notice shall describe the
property to be sold and shall state the name of the person for whose
account the same is then held and the time and place of such sale,
provided, that if the property to be sold is a security, the description
in such notice shall consist of a statement of the name of the issuer or
obligor, the state of incorporation or organization of the issuer or
obligor, the amount and class of the security and the address of the
issuer or obligor last known to the lienor. For the purpose of this
article, the term "security" shall include common and preferred stocks
and bonds, debentures, notes and other obligations, corporate or
otherwise, for the payment of money.
2. Each sale of personal property of a value of less than one hundred
dollars, other than a security, to satisfy a lien thereon, shall be made
pursuant to the provisions of subdivision one hereof, or at a bona fide
private sale in the city or town where the lien was acquired. A bona
fide private sale pursuant to this section shall not be made until the
expiration of six months after the time for the payment of the amount of
the lien specified in the notice required to be served by section two
hundred one or two hundred one-a of this article. Notice of the bona
fide private sale shall be posted at least twenty days before such sale
in a conspicuous place on the premises where the personal property was
left or delivered by the owner. Such notice shall either (a) contain the
name and address of the owner and a brief description of the property,
or (b) provide that all property left on or before a specified date will
be subject to sale, and shall also specify the time and place of sale.
S 202-a. Sale of a security. A description of a security, as such term
is defined in section two hundred two, substantially similar to the
description specified in said section shall, in the absence of agreement
to the contrary and unless otherwise provided by statute, be deemed
sufficient for the purposes of a notice of sale of such security at
public auction to satisfy a lien thereon although such sale is not made
pursuant to the provisions of this article. Nothing in this section or
in section two hundred two or in section two hundred two-b shall be
construed to invalidate any sale of such a security made in accordance
with the provisions of an applicable agreement.
S 202-b. Pledgee may buy at public sale. Unless the pledge agreement
otherwise provides, in all cases where a pledgee may lawfully sell
pledged property and the property is sold at public sale, the pledgee,
or his assignee or the legal representative of either, may fairly and in
good faith purchase the pledged property or any part thereof at the
sale. This section does not apply to a sale of property pawned or
pledged with a collateral loan broker.
S 203. Redemption before sale. At any time before such property is so
sold, the owner thereof or any person entitled to notice of sale
pursuant to section two hundred one of this article may redeem the
property by paying to the lienor the amount due on account of the lien,
and whatever legitimate expenses have been incurred at the time of such
payment in serving the notice and advertising the sale as required in
this article. Upon making such payment, any of such persons are entitled
to the possession thereof.
Top of Page
S 204. Disposition of proceeds. Of the proceeds of such sale, the
lienor shall retain an amount sufficient to satisfy his lien, and the
expenses of advertisement and sale. The balance of such proceeds, if
any, shall be held by the lienor subject to the demand of the owner, or
his assignee or legal representative, or any person entitled to notice
of sale pursuant to section two hundred one of this article. A notice
that such balance is so held shall be served personally or by mail upon
all such persons. If such balance is not claimed by any of such persons
within thirty days from the day of sale, such balance shall be deposited
with the treasurer or chamberlain of the city or village, or the
commissioner of finance in the city of New York, or the supervisor of
the town, where such sale was held. There shall be filed with such
deposit, the affidavit of the lienor, stating the name and place of
business or residence of such persons, if known, the articles sold, the
prices obtained therefor, that the notice required by this article was
duly served and how served upon such persons, and that such sale was
legally and how advertised. There shall also be filed therewith a copy
of the notice or judgment served upon such persons and the notice of
sale published or posted as required by this article. The officer with
whom such balance is deposited shall credit the same to such persons,
and pay the same to such persons on demand and satisfactory evidence of
identity. If such balance remains in the possession of such officer for
a period of five years, unclaimed by a person legally entitled thereto,
it shall be transferred to the general funds of the town, village or
city, and be applied and used as other moneys belonging to such town,
village or city.
S 205. Remedy not exclusive. The preceding provisions of this article
do not preclude any other remedy by action or otherwise, now existing,
for the enforcement of a lien against personal property, or bar the
right to recover so much of the debt as shall not be paid by the
proceeds of the sale of the property.
S 206. Enforcement by action; when and in what courts; procedure in
action to foreclose real property mortgage applicable in actions to
foreclose a mortgage or other lien. An action may be maintained to
foreclose a lien upon a chattel, for a sum of money, in any case where
such a lien exists at the commencement of the action. The action may be
brought in any court, of record or not of record, which would have
jurisdiction to render a judgment, in an action founded upon a contract,
for a sum equal to the amount of the lien. For the purposes of this
section and of sections two hundred seven to two hundred ten inclusive a
chattel mortgage to secure the payment of a loan of money or other debt,
or the purchase price of chattels, a contract of conditional sale of
personal property, a hiring of personal property where title is not to
vest in the person hiring until payment of a certain sum and a security
interest created by a security agreement in personal property, shall be
deemed a lien upon a chattel. The procedure in an action to foreclose a
mortgage on real property, in so far as it may be applicable, shall
apply in actions to foreclose a mortgage or other lien on chattels or
other personal property.
S 207. Warrant to seize chattel; proceedings thereupon. If the
plaintiff is not in possession of the chattel, a warrant may be granted
by the court, or a judge thereof, commanding the sheriff, or such
enforcement officer as is provided by law to execute the mandates of the
particular court, to seize the chattel and safely keep it to abide the
final judgment in the action. The provisions of the civil practice law
and rules, and the provisions of the court act of the particular court,
relating to an order of attachment shall apply to such warrant of
seizure, and to the proceedings to procure it, and after it has been
issued, except as otherwise expressly prescribed in this article.
S 208. Judgment. In an action brought in a court specified in the last
section, final judgment, in favor of the plaintiff, must specify the
amount of the lien or the monetary obligation secured by the security
interest, and direct a sale of the chattel to satisfy the same and the
costs, if any, by a referee appointed thereby, or an officer designated
therein, in like manner as where a sheriff sells personal property by
virtue of an execution; and the application by him of the proceeds of
the sale, less his fees and expenses, to the payment of the amount of
the lien or the monetary obligation secured by the security interest,
and the costs of the action. It must also provide for the payment of the
surplus to the owner of the chattel, and for the safe keeping of the
surplus, if necessary, until it is claimed by him. If a defendant, upon
whom the summons is personally served, is liable for the amount of the
lien or the monetary obligation secured by the security interest, or for
any part thereof, it may also award payment accordingly.
S 209. Action in inferior court. Where the action is brought in a
court, other than one of those specified in section two hundred and
seven, if the plaintiff is not in possession of the chattel, a warrant,
commanding the proper officer to seize the chattel, and safely keep it
to abide the judgment, may be issued, in like manner as a warrant of
attachment may be issued in an action founded upon a contract, brought
in the same court; and the provisions of law, applicable to a warrant of
attachment, issued out of that court, apply to a warrant, issued as
prescribed in this section, and to the proceedings to procure it, and
after it has been issued; except as otherwise specified in the judgment.
A judgment in favor of the plaintiff, in such an action, must correspond
to a judgment, rendered as prescribed in the last section, except that
it must direct the sale of the chattel by an officer to whom an
execution, issued out of the court, may be directed; and the payment of
the surplus, if its safekeeping is necessary, to the county treasurer,
for the benefit of the owner.
S 210. Application. Sections two hundred and six to two hundred nine
inclusive do not affect any existing right or remedy to foreclose or
satisfy a lien upon, or a security interest in a chattel, without
action; and they do not apply to a case, where another mode of enforcing
a lien upon a chattel is specially prescribed by law.
S 211. Arrears/past due support. 1. The New York state office of
temporary and disability assistance, or a local social services
district, or its authorized representative on behalf of persons
receiving services under title six-A of article three of the social
services law shall have a lien against personal property owned by a
support obligor when such support obligor is or was under a court order
to pay child support or combined child and spousal support to a support
collection unit and such support obligor has accumulated support
arrears/past due support in an amount equal to or greater than the
amount of support due pursuant to such order for a period of four
months. Such lien shall be in an amount sufficient to satisfy such
support arrears/past due support. Said lien shall be perfected in the
case of a vehicle as that term is defined in section two thousand one
hundred one of the vehicle and traffic law with the department of motor
vehicles. The filing of a notice of lien or of a release of lien shall
be completed without payment of a fee. The filing of notice of lien or
release of lien may be done by electronic means.
2. The state shall accord full faith and credit to liens which arise
in another state when such state agency, party or other entity seeking
to enforce such a lien complies with the procedural rules relating to
such liens as provided for in section one hundred eleven-u of the social
services law, article forty-six of the vehicle and traffic law or
article nine of this chapter as is appropriate. Such rules may not
require judicial notice or hearing prior to enforcement of such a lien
and enforcement shall be governed by article nine of this chapter.
3. For the purposes of determining whether a support obligor has
accumulated support arrears/past due support for a period of four
months, the amount of any retroactive support, other than periodic
payments of retroactive support which are past due, shall not be
included in the calculation of arrears/past due support pursuant to this
section; however, if at least four months of support arrears/past due
support have accumulated subsequent to the date of the court order, the
entire amount of any retroactive support may be collected pursuant to
the provision of this section or as otherwise authorized by law.