Introduced By: Senators Irons, Oster, Walaska, Bates, and Breene
Date Introduced : February 5, 1998
It is enacted by the General Assembly as follows:
SECTION 1. Title 34 of the General Laws entitled "Property " is hereby amended by adding thereto the following chapter:
{ADD 34-30.1-1. Manufacturer's mold lien. -- ADD} {ADD Molders shall have a lien on all dies, molds, forms or patterns in their possession belonging to a customer, for the balance due them from such customer for any manufacturing or fabrication work and in the value of all material related to such work. The molder may lawfully retain possession of the die, mold, form or pattern until the debts are paid. ADD}
{ADD 34-30.1-2. Enforcement of lien -- Notice. -- ADD} {ADD (1) Before enforcing such lien, notice in writing shall be given to the customer either by delivering the notice personally or sending the notice by registered mail to the last known address of the customer. This notice shall state that a lien is being claimed for the damages set forth in or attached to such writing for manufacturing or fabrication work contracted or performed for the customer. This notice shall also include a demand for payment in a specific amount. ADD}
{ADD (2) If the molder has not been paid the amount due within sixty (60) days after the notice has been received by the customer as provided in section 34-30.1-2(1), the molder may sell the die, mold, form or pattern at a public auction and retain the proceeds. ADD}
{ADD 34-30.1-3. Notice of sale. -- ADD} {ADD (a) Prior to the sale at public auction the molder shall notify the customer by registered mail return receipt requested. The notice shall include the following information: ADD}
{ADD (1) The molder's intention to sell the die, mold, form or pattern thirty (30) days after the customer's receipt of the notice. ADD}
{ADD (2) A description of the die, mold, form or pattern to be sold. ADD}
{ADD (3) The time and place of the sale. ADD}
{ADD (4) An itemized statement of the amount due. ADD}
{ADD (b)(1) 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 or pattern in a newspaper of general circulation in the city or town of the customer's last known place of business. The notice shall include a description of the die, mold, form or pattern. ADD}
{ADD (c) If the sale is for a sum greater than the amount of the lien, the excess shall be paid to any prior lienholder of which the molder has actual knowledge at the time of 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. ADD}
{ADD 34-30.1-4. Sale in violation of federal patent or copyright law. -- ADD} {ADD (1) If any sale is made under this chapter in violation of any right of a customer under federal patent or copyright law said sale shall be void and unenforceable and all proceeds shall be returned to the customer. ADD}
{ADD (2) A lien under this chapter does not take priority over and shall be subject to an existing perfected security interest. ADD}
SECTION 2. This act shall take effect upon passage.
