NRS 108.310 Satisfaction of lien; sale by public auction; private sale in certain circumstances; requirement for sale to be commercially reasonable; disposition of proceeds.
596 words·~3 min read·
/nv/chapter-108-statutory-liens/108-310A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
NRS 108.310 Satisfaction of lien; sale by public auction; private sale in certain circumstances; requirement for sale to be commercially reasonable; disposition of proceeds. Subject to the provisions of NRS 108.2723 and 108.315 , the lien created in NRS 108.270 to 108.367 , inclusive, may be satisfied as follows:
1. The lien claimant shall give written notice to the person on whose account the storing, maintaining, keeping, repairing, labor, fuel, supplies, facilities, services or accessories were made, done or given, and to any other person known to have or to claim an interest in the motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home, upon which the lien is asserted, and to the:
(a)Housing Division of the Department of Business and Industry with regard to mobile homes, manufactured homes and commercial coaches as defined in chapter 489 of NRS; or
(b)Department of Motor Vehicles with regard to all other items included in this section.
2. Except as otherwise provided in subsection 3, in accordance with the terms of a notice so given, a sale by public auction must be held to satisfy any valid claim which has become a lien on the motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home.
3. A lien claimant may cause a motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home to be sold by private sale directly to a third-party purchaser in an arm’s length transaction if the lien claimant is unable to sell the motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home at a public auction after a reasonable effort.
4. Every aspect of a sale made pursuant to subsection 2 or 3, including, without limitation, the method of advertising, time, date, place, terms and price, must be commercially reasonable.
5. After the time for the payment of the claim specified in the notice has elapsed, an advertisement of the sale, describing the motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home to be sold, and stating the name of the owner or person on whose account it is held, and the time and place of the sale, must be published once a week for 3 consecutive weeks in a newspaper of general circulation published in the place where the sale is to be held. The sale must not be held less than 22 days after the time of the first publication.
6. From the proceeds of the sale the lien claimant who furnished the services, labor, fuel, accessories, facilities or supplies shall satisfy the lien, including the reasonable charges of notice, advertisement and sale. The balance, if any, of the proceeds must be delivered, on demand, to the person to whom the lien claimant would have been bound to deliver, or justified in delivering, the motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home.
7. Nothing in this section shall be construed to prohibit a lien claimant from purchasing a motor vehicle, aircraft, motorcycle, motor or aircraft equipment, aircraft parts, trailer, recreational vehicle, mobile home or manufactured home at a public auction held pursuant to subsection 2 if the sale complies with the requirements prescribed by subsection 4.
8. As used in this section, “arm’s length transaction” means a transaction in which the buyer is not affiliated with the seller.