§ 32-33-11-6 — Additional goods, merchandise, machines, or other articles of value subject to liens

(a) In addition to the lien provided for in
section 1 of this chapter, a person, firm, limited liability company, or
corporation that ships, transfers, hauls, or conveys goods, merchandise,
machines, machinery, or other articles of value for another person is
entitled to a lien:
(1) upon goods, merchandise, machines, machinery, or other
articles of value:
(A) shipped;
(B) transferred;
(C) hauled; or
(D) conveyed;
for the other person; and
(2) to cover charges that the other person owes the person, firm,
limited liability company, or corporation for goods, merchandise,
machines, machinery, or other articles of value previously:
(A) shipped;
(B) transferred;
(C) hauled; or
(D) conveyed;
by the person, firm, limited liability company, or corporation for
the other person.
(b) To obtain a lien under this section, a person, firm, limited
liability company, or corporation must do the following:
(1) Notify the other person in writing that if the other person fails
to pay the person, firm, limited liability company, or corporation
for shipping, transferring, hauling, or conveying goods,
merchandise, machines, machinery, or other articles of value, the
person, firm, limited liability company, or corporation may obtain
a lien upon goods, merchandise, machines, machinery, or other
articles of value subsequently:
(A) shipped;
(B) transferred;
(C) hauled; or
(D) conveyed;
by the person, firm, limited liability company, or corporation for
the other person.
(2) File an intention to hold a lien with a county recorder as
provided in section 2 of this chapter.
(c) A sale of property subject to a lien acquired under this section
may not take place under section 4 of this chapter:
(1) for at least thirty-five (35) days after the date the person, firm,
limited liability company, or corporation that has obtained the lien
takes possession of the property; and
(2) unless the person, firm, limited liability company, or
corporation that has obtained the lien notifies:
(A) the person that had the property shipped, transferred,
hauled, or conveyed;
(B) the consignee of the property; and
(C) a secured party that has a perfected security interest in the
property;
of the date, time, and location of the sale at least ten (10) days
before the date the sale occurs.
(d) A sale of property subject to a lien acquired under this section
may not be concluded if the largest amount bid for the property is not
at least equal to the total amount of all outstanding obligations secured
by perfected security interests in the property. The proceeds of the sale
of property subject to a lien under this section shall be applied as
follows:
(1) First, to a secured party that has a perfected security interest
in the property in an amount equal to the amount of the perfected
security interest.
(2) Second, to the discharge of the lien acquired under this
section.
(3) Third, to the legal owner of the property.
If the highest bid for the property does not at least equal the total
amount of all outstanding obligations secured by a perfected security
interest in the property, the person, firm, limited liability company, or
corporation that obtained the lien on the property under this section
shall release the property to the legal owner of the property if the legal
owner pays the person, firm, limited liability company, or corporation
the amount due for shipping, transferring, hauling, or conveying the
property that does not include an amount charged for property that the
person, firm, limited liability company, or corporation previously
shipped, transferred, hauled, or conveyed.
(e) A person, firm, limited liability company, or corporation that
obtains a lien under this section:
(1) is liable to a secured party that has a security interest in
property covered by the lien:
(A) if the person, firm, limited liability company, or corporation
violates this section; and
(B) for damages and expenses, including reasonable attorney's
fees, incurred by the secured party in enforcing the secured
party's rights; and
(2) is not liable to a consignee of property for damages that the
consignee incurs because the person, firm, limited liability
company, or corporation obtained a lien on the property under this
section.
(f) A perfected security interest in property has priority over a lien
obtained under this section.
(g) A lien may not be acquired under this section upon perishable
goods.
[Pre-2002 Recodification Citation: 32-8-32-7.]

Legislative History

As added by P.L.2-2002, SEC.18.