Section
1. Amend § 3906, Title 25 of the
Delaware Code by making additions as shown by underlining and deletions as
shown by strike through as follows:
§ 3906. Motor vehicles.
(a)
Any lienholder under § 3901 who is not paid the amount due within 30 days of
the same becoming due and who holds a valid Delaware business license and holds
a lien on a motor vehicle, other than a motor vehicle which meets the
definition of “manufactured home” in section 7003 of this title, may proceed to
sell the property under the provisions of this section, notwithstanding any
other provision in this chapter. The
requirements of § 3905 shall still apply to any sale under this section.
(b)
Before such sale is held the lienholder shall serve a notice upon the owner by
mailing it to the owner at his last known place of residence, or to his last
known post-office address. Any notice
permitted or required under this section shall be sent by certified mail,
return receipt requested, and by first-class mail. A like notice shall be served in the same way
upon any person who shall have given to the lienholder 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
motor vehicle law.
(c)
Notices required by this section shall contain the following:
(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;
(5) A demand that the owner
pay the amount of such lien, on or before a date mentioned therein, not less
than 60 days from the date of mailing, and the time when and place where such
property will be sold, if such amount is not paid;
(6) A statement that the
owner is entitled to bring a proceeding under subsection (f) within 60 days of
the date of mailing of the notice if the owner disputes the validity of the
lien or the amount claimed; and
(7) A signed verification,
under penalty of perjury, by the lienholder 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 the lienholder’s knowledge and belief.
(d) In the case of motor vehicles required to
be registered under the motor vehicle laws of this or any other state, notice
containing the information required in § 3903(b) or § 3906(b) of this
title shall be given to the registered owners and known lienholders at their
addresses of record with the Division of Motor Vehicles or similar agency and
the return receipt, signed or unsigned, shall be held and considered as prima
facie evidence of service of such notice.
(e)
The lienholder shall notify the appropriate Delaware State Police
auto theft unit for appropriate inspection.
(f) Within 60 days after mailing of the notice of
sale under this section, the owner or any person entitled to notice pursuant to
subsection (b) may commence a special proceeding to determine the validity of
the lien. If the owner or any such
person shall show that the lienholder is not entitled to claim a lien in the
property, or that all or part of the amount claimed by the lienholder has not
been properly charged to the account of such owner or such person, or, that all
or part of such amount exceeds the fair and reasonable value of the services
performed by the lienholder, the court shall direct the entry of judgment
cancelling the lien or reducing the amount claimed thereunder accordingly. If the lienholder 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 expiration of five
days after service of a copy thereof upon the owner or such person, unless the
property is redeemed prior thereto. If
the lien is cancelled, the judgment shall provide that, upon service of a copy
of the judgment upon the lienholder, the owner or such person shall be entitled
to possession of the property.
(g)
The Division of Motor Vehicles is authorized to adopt administrative
regulations and forms relating to motor vehicles subject to this section. In the event a sale or title transfer is
completed without complying with this section, no cause of action shall lie
against the Division of Motor Vehicles.
An owner or other such person may seek damages only from the lienholder
responsible for the sale of the vehicle.
Section 2.
Amend § 3909, Title 25 of the Delaware Code by making additions as shown
by underlining and deletions as shown by strike through as follows:
§
3909. Jurisdiction
The
Justice of the Peace Court in the county in which the lienholder's business
establishment is located shall have exclusive original jurisdiction of all petitions
for sale proceedings under this chapter, notwithstanding the
monetary amount claimed by the lienholder. In the event that the lienholder's
business establishment is located in more than 1 county, the Justice of the
Peace Court in the county where the property is, or most recently was, located
shall have exclusive jurisdiction. The Justice of the Peace Court shall also
hear actions in replevin or detinue filed under this chapter, unless a party
requests a jury and pays all necessary costs to transfer the action to Superior
Court.
Section
3. This Act takes effect on January 1,
2013.
