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Delaware
Delaware Liens for Service to Horses and Care of Horses
NOTE: Delaware has no liens for veterinarians, farriers or
breeders. However, its agister's lien is broad enough to cover
all residential services to horses.
DELAWARE CODE
TITLE 25. PROPERTY
PART II. MORTGAGES AND OTHER LIENS
CHAPTER 39. LIENS OF GARAGE OWNERS, LIVERY AND STABLE KEEPERS;
REPLEVIN BY OWNER
3901 Persons entitled to liens.
(a) Any hotelkeeper, innkeeper, garage owner, auction service
or other person who keeps a livery, boarding stable, garage,
airport, marina or other establishment and, for price or reward
at such livery, boarding stable, garage, airport, marina or
other establishment, furnishes food or care for any horse
or has the custody or care of any carriage, cart, wagon, sleigh,
motor vehicle, trailer, moped, boat, airplane or other vehicle
or any harness, robes or other equipment for the same or makes
repairs, auctions, performs labor upon, furnishes services,
supplies or materials for, stores, safekeeps or tows any carriage,
cart, wagon, sleigh, motor vehicle, trailer, moped, boat,
airplane or other vehicle or any harness, robes or other equipment
for the same shall have a lien upon such horse, carriage,
cart, wagon, sleigh, motor vehicle, trailer, moped, boat,
airplane or other vehicle, harness, robes or equipment and
the right to detain the same to secure the payment of such
price or reward.
(b) Unless the context of this chapter requires otherwise,
a lienholder shall mean any person defined in subsection (a)
of this section.
3902 Lienholder's loss of possession.
In case, either before or after the price or reward become
due and payable, the lienholder under s 3901 of this title
loses possession of the encumbered property, except by court
order pursuant to this chapter, the lienholder's lien shall
continue in full force and effect, provided that within 10
days from the time of the loss of possession the lienholder
pursuant to s 3903 of this title files an application for
the issuance of an authorization to conduct a lien sale or
files a counterclaim for the sale of the encumbered property
pursuant to this chapter in a replevin action brought pursuant
to Chapter 95 of Title 10 by the owners or other persons claiming
an interest in the property.
3903 Sale to satisfy liens.
(a) If a lienholder under s 3901 or 3902 of this title is
not paid the amount due, and for which the lien is given within
30 days after the same or any part thereof became due, then
the lienholder may proceed to sell the property, or so much
thereof as may be necessary, to satisfy the lien and costs
of sale pursuant to s 3905 of this title if:
(1) An authorization to conduct a lien sale has been issued
pursuant to this section;
(2) A judgment has been entered in favor of the lienholder
on the claim which gives rise to the lien; or
(3) The owners and any secured parties of record or known
lienholders of the property have signed, after the lien has
arisen, a release of any interest in the property in the form
prescribed by s 3904 of this title.
(b) A lienholder may apply to a justice of the peace in the
county in which the lienholder's business establishment is
situated for the issuance of any authorization to conduct
a lien sale under s 3905 of this title. The application shall
be executed under penalty of perjury and shall include all
of the following:
(1) A description of the property.
(2) The names and addresses of the owners of the property
and the names and addresses of any other persons who the lienholder
knows claim an interest in the property.
(3) A statement of the amount of the lien and facts concerning
the claim which gives rise to the lien. If compensation for
storage is claimed, the per diem rate of storage shall be
shown.
(4) The date, time and place that the property will be sold
if the authorization to conduct a lien sale is issued.
(5) A statement that the lienholder has no information or
belief that there is a valid defense to the claim which gives
rise to the lien.
(c) Upon receipt of an application which is made pursuant
to subsection (b) of this section, the justice of the peace
shall send a notice and a copy of the application by certified
mail or registered mail, return receipt requested, to the
owners, secured parties of record and any known lienholders
and any other persons whose names and addresses are listed
in the application. If the identity of the last registered
owner or secured party cannot be determined with reasonable
certainty, s 3905 of this title shall have the same effect
as notice sent by certified or registered mail. The notice
shall include all of the following:
(1) A statement that an application has been made with the
justice of the peace for the issuance of an authorization
to conduct a lien sale.
(2) A statement that the person has a legal right to a hearing
in court; if a hearing in court is desired, the enclosed declaration
under penalty of perjury must be signed and returned and if
the declaration is signed and returned, the lienholder will
be allowed to sell the vehicle only if he obtains a judgment
in court or obtains a release from the owners and any known
lienholders.
(3) A statement that if the declaration is signed and returned,
a hearing will be promptly scheduled and the owners may then
appear to contest the claim of the lienholder.
(4) A statement of the date, time and place that the property
will be sold if the authorization to conduct a lien sale is
issued.
(5) A statement that the justice of the peace will issue the
authorization to conduct a lien sale unless the person signs
and returns, within 20 days after the date on which the notice
was mailed, the enclosed declaration stating that the person
desires to contest the claim which gives rise to the lien.
(6) A statement that the person shall be liable for costs
if a judgment is entered in favor of the lienholder on the
claim which gives rise to the lien.
(7) A declaration which may be executed by the person under
penalty of perjury stating that he desires to contest the
claim which gives rise to the lien and that he has a valid
defense to the claim and he shall furnish names and addresses
where official notice may be received of any person or persons
including himself known to claim an interest in the property
of the hearing date.
(d) If the justice of the peace receives a declaration described
in paragraph (3) of subsection (c) of this section which is
mailed within 20 days after the date upon which the notice
described in subsection (c) of this section is mailed, the
justice of the peace shall notify the lienholder and owners
and any other persons listed in the application or declaration
of the hearing date unless the owners of the property and
any known lienholder(s) have signed, after the lien has arisen,
a release of any interest in the property in the form prescribed
by s 3904 of this title. In any other case, the justice of
the peace shall issue an authorization to conduct a lien sale.
(e) In any hearing, the lienholder may have the amount of
the indebtedness and right to sale determined and the person
requesting the hearing may present and have determined any
defenses, setoffs, counterclaims, cross-claims or third-party
actions.
(f) Any fees shall be recoverable as a cost by the lienholder
if a sale is conducted.
(g) The form of the applications, notices and declarations
described in this section shall be prescribed by the justice
of the peace. The language used in the applications, notices
and declarations should be simple and nontechnical.
3904 Release of owner's interest in vehicle or property.
(a) An owner of property subject to a lien under s 3901 or
s 3902 of this title may release any interest in the property
after the lien has risen. The release shall be dated when
signed and a copy shall be given at the time the release is
signed to the person releasing the interest.
(b) The release shall contain all of the following information
in simple, nontechnical language:
(1) A description of the property sufficient to identify it.
(2) The names and addresses of the owners.
(3) A statement of the amount of the lien and the facts concerning
the claim which gives rise to the lien.
(4) A statement that the person releasing the interest understands
that he has a legal right to a hearing in court prior to any
sale of the property to satisfy the lien and he is giving
up the right to appear to contest the claim of the lienholder.
(5) A statement that the person releasing the interest gives
up any interest he may have in the property and he is giving
the lienholder permission to sell the property.
(6) A statement that there is no other person, persons or
lienholders who have an outstanding interest in the property.
3905 Notice of sale; disposition of proceeds.
(a) Prior to any such sale the lienholder shall give at least
15 days' notice of the sale by handbills posted in 5 or more
public places and by advertising in a newspaper published
and/or circulated in the county in which the sale is to be
held.
(b) The proceeds of the sale shall be applied to the discharge
of the lien and the cost of keeping and selling the property.
The balance, if any, of the proceeds of the sale shall be
deposited not later than 10 days from the date of the sale
with the court to be applied by the court to the payment of
any lien or security interest to which the property may be
subject in the order of their priority, with any remaining
proceeds to be paid to the owner or owners of the property
sold but, in case such owner or owners cannot be found, such
balance shall be turned over to the State Treasurer not later
than 60 days from the date of the sale who shall create a
special fund thereof and who shall pay to the owner the moneys
left if a claim is made within 1 year of the sale, or deposit
the moneys in the General Fund if no claim is made within
1 year of the sale.
(c) In every lien sale authorized under this chapter, it shall
be the duty of the lienholder to complete and file with the
court a disposition of proceeds form, justice of the peace
civil form no. 48, within 10 days from the date of the sale.
No transfer of or new certificate of title to the vehicle
sold or salvage certificate shall be issued by the Division
of Motor Vehicles without proof of the filing of said disposition
of proceeds form with the court within the required time period.
A copy of the disposition of proceeds form sealed with the
court's seal shall constitute sufficient proof of filing.
3907 Priority of lien.
(a) All liens created pursuant to s 3901 or s 3902 of this
title shall be superior to any lien, title or interest of
any person who has a security interest by virtue of a conditional
sales contract or a prior perfected security interest in accordance
with Article 9 of Title 6.
(b) Notwithstanding the provisions of subsection (a) of this
section, any person who stores or safekeeps any motor vehicle
towed at the request of a party other than the owner of the
vehicle may attain priority of lien as follows:
(1) By providing notice by certified mail to a title holder
of record within 7 business days of the date upon which possession
is taken;
(2) By providing notice by certified mail to lienholders of
record within 7 business days of the date upon which possession
is taken; and
(3) By providing notice by telephone or in person to the appropriate
police agency.
3908 Remedy of owner.
The owners or other persons claiming an interest in the property,
in addition to the right to a hearing as provided herein,
shall have the right to file an action in replevin at any
time in accordance with Chapter 95 of Title 10, and no bond
shall be required to be posted as a prerequisite to the filing
of such an action or the issuance of the writ of replevin.
3909 Jurisdiction.
Except where a lienholder's business establishment is located
within the city limits of Milford or within 3 miles of said
limits in which case Justice of the Peace Court No. 5 in Milford
shall have exclusive jurisdiction, the Justice of the Peace
Court in the county in which the lienholder's business establishment
is situated shall have exclusive jurisdiction of all petitions
for sale or replevin under this chapter, notwithstanding any
monetary amount which is claimed by the lienholder.
3910 Rules.
The Justice of the Peace Court may adopt appropriate and specific
rules to effectuate the intent and purpose of this chapter.
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