1.If an occupant is in default for a period of at least thirty days, the operator may
enforce the lien granted in section 578A.5 by selling the occupant’s personal property. Sale
of the occupant’s personal property may be by public or private proceedings. Such personal
3 SELF-SERVICE STORAGE FACILITIES, §578A.7
property may be sold as a unit or in parcels, by way of one or more contracts, at any time or
place, and on any terms as long as the sale is commercially reasonable. The operator may
otherwise dispose of any property that has no commercial value.
2.Before conducting a sale under this section, the operator shall do all of the following:
a.Send notice of default to the occupant by hand mail, verified mail, or electronic mail
pursuant to subsection 7. The notice of default shall inc
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1. If an occupant is in default for a period of at least thirty days, the operator may
enforce the lien granted in section 578A.5 by selling the occupant’s personal property. Sale
of the occupant’s personal property may be by public or private proceedings. Such personal
3 SELF-SERVICE STORAGE FACILITIES, §578A.7
property may be sold as a unit or in parcels, by way of one or more contracts, at any time or
place, and on any terms as long as the sale is commercially reasonable. The operator may
otherwise dispose of any property that has no commercial value.
2. Before conducting a sale under this section, the operator shall do all of the following:
a. Send notice of default to the occupant by hand mail, verified mail, or electronic mail
pursuant to subsection 7. The notice of default shall include all of the following:
(1) A statement of the operator’s claim showing that the amount due at the time of the
notice and the date when the amount became due.
(2) A brief and general description of the personal property subject to the lien. The
description shall be reasonably adequate to permit the occupant to identify the property,
except that any container including a trunk, valise, or box that is locked, fastened, sealed,
or tied in a manner which deters immediate access to the container’s contents shall be
described as such and shall omit a description of the contents.
(3) A demand for payment of the charges due within a specified time, which shall not be
less than fourteen days after the date of the notice.
(4) A statement that unless the claim is paid within the time stated, the contents of the
occupant’s leased space will be sold or otherwise disposed of after a specified time.
(5) The name, street address, and telephone number of the operator or a designated agent
whom the occupant may contact to respond to the notice.
b. Notify all persons who claim a security interest in the personal property of whom the
operator has actual knowledge. An operator shall conduct a search to determine whether
there is a security interest in property subject to sale if the property is registered under
chapter 321 or 462A. At least seven days before the sale, the operator shall also advertise
the time, place, and terms of the sale in a commercially reasonable manner. The manner
of advertisement is deemed commercially reasonable if it is likely to attract at least three
independent bidders to attend or view the sale in person or online at the time and place
advertised. The operator may buy the occupant’s personal property at any public sale held
pursuant to this section.
3. If the personal property subject to the operator’s lien is a vehicle, watercraft, or trailer,
and rent or other charges remain due and unpaid for thirty days, the operator may have
the vehicle, watercraft, or trailer towed from the self-service storage facility. The operator
shall not be liable for any damages to the vehicle, watercraft, or trailer once the tower takes
possession of the property. Removal of any vehicle, watercraft, or trailer from the self-service
storage facility shall not release the operator’s lien.
4. At any time before a sale is held under this section or before a vehicle, watercraft, or
trailer is towed under this section, the occupant may pay the amount necessary to satisfy the
lien and redeem the occupant’s personal property.
5. In the event of a sale under this section, the operator may satisfy the lien from the
proceeds of the sale, but shall hold the balance, if any, for a period of ninety days for delivery
on demand to the occupant. If the occupant does not claim the balance within ninety days,
the balance shall be paid to the county treasurer in the county where the self-service storage
facility is located. The county treasurer shall hold the funds for a period of two years. If a
claim is not made by the occupant for the funds, then the funds shall become the property
of the county. There shall be no further recourse by any person against the operator for an
action pursuant to this section.
6. A purchaser in good faith of any personal property sold to satisfy a lien under this
chapter takes the property free of any rights of persons against whom the lien was valid,
despite noncompliance by the operator with the requirements of this chapter. The purchaser
of a motor vehicle shall apply for a new title to the vehicle by the procedures outlined in
section 321.47. For all other property which has a written title, the purchaser shall follow the
applicable procedures for the property for the transfer of title by operation of law.
7. Notice to the occupant under subsection 2, paragraph “a”, shall be sent to the
occupant’s last-known address by hand delivery, verified mail, or electronic mail. Notices
sent by hand delivery shall be deemed delivered when the occupant has signed an
acknowledgment of delivery. Notices sent by verified mail shall be deemed delivered when
deposited with the United States postal service or private delivery service if the notices are
§578A.7, SELF-SERVICE STORAGE FACILITIES 4
properly addressed with postage prepaid. Notices sent by electronic mail shall be deemed
delivered when an electronic mail is sent to the last-known address provided by the occupant.
If the operator sends notice by electronic mail and receives an automated message stating
that the electronic mail cannot be delivered, the operator shall send notice by hand delivery
or by verified mail to the occupant’s last-known address with postage prepaid.
8. If the operator complies with the requirements of this section, the operator’s liability:
a. To the occupant, shall be limited to the net proceeds received from the sale of the
occupant’s personal property less any proceeds paid to the holders of any lien or security
interest of record on the personal property being sold.
b. To the holders of any lien or security interest of record on the personal property being
sold, shall be limited to the net proceeds received from the sale of the personal property
subject to the holder’s lien or security interest.