Section 31G: Molders; lien on customer dies, molds, forms, engraving plates, original art or patterns
593 words·~3 min read·
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Section 31G.
(a)As used in this section, the words ''customer'' and ''molder'' shall be as defined in section 320 of chapter 94.
(b)Molders shall have a lien, dependent on possession, on all dies, molds, forms, engraving plates, original art or patterns in their hands belonging to a customer, for the balance due them from the customer for any manufacturing or fabrication work, and in the value of all material related to the work. The molder may retain possession of the die, mold, form, engraving plate, original art or pattern until the charges are paid. The lien created hereby shall have priority over any title, lien, interest or encumbrance in the die, mold, form, engraving plate, original art or pattern and shall not be surrendered or waived except by express written agreement of the parties involved. The lien provided by this section shall not apply if within 30 days of delivery of the product or products subject to such lien, the customer has provided the molder with written notice of defect and returned the products due to a defect.
(c)Before enforcing the lien for purposes of sale pursuant to this section, notice in writing shall be given to the customer whether delivered in hand or sent by registered mail to the last known address of the customer. This notice shall state that a lien is claimed for the damages set forth in or attached to the writing for manufacturing or fabrication work contracted or performed for the customer. This notice shall also include a demand for payment.
(d)If the molder has not been paid the amount due within 60 days after the notice has been received by the customer as provided in subsection (c), the molder may sell the die, mold, form, engraving plate, original art or pattern at a public auction. The sale may be subject to a customer's rights under federal patent or copyright law.
(e)Before a molder may sell the die, mold, form, engraving plate, original art or pattern, the molder shall notify the customer by registered mail, return receipt requested. The notice shall include the following information:—
(1)the molder's intention to sell the die, mold, form, engraving plate, original art or pattern 30 days after the customer's receipt of the notice;
(2)a description of the die, mold, form, engraving plate, original art or pattern to be sold;
(3)the time and place of the sale; and
(4)an itemized statement for the amount due.
(f)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, engraving plate, original art or pattern in a newspaper of general circulation in the city or town where the customer's last known place of business is located. The notice shall include a description of the die, mold, form, engraving plate, original art or pattern.
(g)The proceeds of said sale, after paying the expenses thereof, shall be applied to the payment of the indebtedness. Any excess shall be paid to any lien holder known to the molder at the time of the sale and any remainder to the customer, if the customer's address is known, or to 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. The remedy herein provided to enforce the lien shall be in addition to any other remedy provided by law.