What's happening
This bill removes the requirement to personally serve notice of sale on property owners in the same county, allowing notice by certified and first-class mail instead.
Why it matters
Streamlines the notice process for property sales due to liens. by eliminating the older, more burdensome requirement of personal service on owners living in the same county, replacing it with certified and first-class mail. This could lead to faster resolution of lien-related sales and reduce administrative costs or delays.
Potentially increases efficiency and predictability for lienors (those owed money). , as they no longer need to expend resources attempting in-person service, especially if the property owner is difficult to locate within the county. This may make it easier for businesses or individuals to recover debts secured by liens.
Shifts the burden to property owners to be vigilant about mail notifications. related to property sales, which could have significant consequences if an owner misses or disregards a mailed notice (for example, risk of losing property through a sale without personally receiving notice).
Aligns the notification process for all property owners, regardless of location. , which could provide greater consistency and clarity in lien enforcement, but may also raise concerns about whether mail is as reliable as personal service for ensuring owners are fully informed.
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Who cares
Headline styles
End Notice for Same-County Owners
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 42
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
5863
2017-2018 Regular Sessions
IN SENATE
May 3, 2017
Introduced by Sen. BONACIC -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the lien law, in relation to eliminating the requirement that a notice of sale must be served upon an owner of property if such owner resides in the same county as the lienor
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The opening paragraph of section 201 of the lien law, as amended by chapter 354 of the laws of 2008, is amended to read as follows:
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 a motor vehicle that is to be sold pursuant to subdivision three of section two hundred two of this article of a value of less than five hundred dollars or other property that 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, return receipt requested, and by first-class mail. A like notice shall be served [in the same way] by certified mail, return receipt requested 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
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11381-01-7
S. 5863 2
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:
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the lien law, in relation to eliminating the requirement that a notice of sale must be served upon an owner of property if such owner resides in the same county as the lienor
Purpose
To eliminate the requirement that a notice of sale must be served upon an owner of property if such owner resides in the same county as the lienor.
Summary of provisions
Amends the opening paragraph of § 201 of the lien law to eliminate the requirement to serve a notice of sale personally.
Justification
Personal service of a notice of sale if the owner of the property resides in the same county as the lienor is costly, unnecessary time-consuming and archaic. The requirement is also applied inconsistently. For example, notices of sale for services performed on gravestones and molds and for services provided by self-service storage facilities, bailees for hire, truckmen and draymen may be served by mail and notices of sale by garage keepers, artisans who work on watches, clocks and jewelry, bailees of animals (veterinarians), manufacturers and throwsters of silk goods, quarrymen and motion picture film laboratories require personal service. There is no rational justification for this disparate treatment of lienors.
The archaic nature of the personal service requirement is best illustrated by the fact that it only applies when the owner of the property and the lienor reside in the same county. A garage -keeper with a place of business in Nassau County is required to personally serve a vehicle owner 30 miles away in Nassau County and allowed to serve owners that are 10 miles away in Queens, Kings and Suffolk Counties by mail.
The requirement to serve an owner personally is also rarely followed. In this regard, the vast majority of liens involve services for the repair, towing and storage of motor vehicles. The Department of Motor Vehicles does not require proof of personal service or due diligence in an attempt to affect personal service when conferring title to vehicles following a lien sale. Garage-keepers who follow DMV's errant advice in good faith are often unable to recoup legitimate repair, towing and storage charges or, worse yet, face charges in conversion for selling vehicles with defective titles.
Legislative history
New bill
Fiscal impact on the state
None.
Effective date
Immediately
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.