# Title 35 — Liens

## Chapter 35-36 — Portable Storage Unit Property Lien

### § 35-36-01. Definitions.

As used in this chapter, unless the context otherwise requires:
1. "Default" means failure of the lessee to pay the rent and other charges at the time and
in the manner set forth in the rental agreement.
2. "Last-known address" means the address provided by the lessee in the latest rental
agreement or the address provided by the lessee in a subsequent written change of
address notice.
3. "Lessee" means a person who leases a portable storage unit, regardless of the unit's
location, under a rental agreement. The term includes a sublessee, successor, and
assignee.
4. "Owner" means a person who owns, leases, subleases, manages, or operates a
portable storage unit and receives rent from a lessee under a rental agreement.
5. "Personal property" means movable property not affixed to land, including
merchandise and household goods.
6. "Portable storage unit" includes a portable container, overseas shipping container, or
semitrailer which may be moved by the owner to a location designated by the lessee
or moved by the lessee to one of several locations, in accordance with the rental
agreement, and in which the lessee customarily stores and removes personal property.
7. "Rental agreement" means a written agreement between the owner and the lessee
which establishes or modifies the terms and conditions of the lessee's use of the
portable storage unit.
### § 35-36-02. Lien against property.

The owner of a portable storage unit has a lien on all personal property stored under a
rental agreement in a portable storage unit for rent, labor, and other charges, and for expenses
reasonably incurred in the sale or other disposition of the property under law. This lien is
superior to other security interests except those perfected before the date the lien attaches. The
lien attaches upon default by the occupant as stated in the notice of default served on the
occupant as provided in this chapter.
### § 35-36-03. Custody and control of property.

Unless the rental agreement provides otherwise, until a sale under this chapter, the lessee
is responsible for the care, custody, and control of all property stored in the portable storage unit
unless the owner secures the property elsewhere during the sale proceedings.
### § 35-36-04. Notice of proceedings.

1. Before conducting a sale, the owner shall deliver in person or send by certified mail a
notice of default to prior lienholders and to the lessee at the lessee's last-known
address. A notice under this section is presumed delivered if the notice is deposited
with the United States postal service and properly addressed with postage prepaid.
The notice must include:
a. A statement that the contents of the portable storage unit are subject to the
owner's lien and that the lessee is denied access to the portable storage unit until
the owner's claim is satisfied;
b. The name of the lessee and the address at which the portable storage unit is
located;
c. A statement of the charges due, the date of default, and a demand for payment of
the charges due within a specified time, which may not be fewer than ten days
after the date of the notice;
d. A statement in bold type providing that, unless the claim is paid within the time
stated, the contents of the portable storage unit will be sold; and

e. The name, address, and telephone number of the owner or other person that the
lessee may contact in response to the notice.
2. In addition to the requirements of subsection 1, an owner shall also publish, once a
week for two consecutive weeks, with the first publication not more than thirty days
before the sale and the last publication at least seven days before the sale, the time,
place, and terms of the sale in a newspaper of general circulation in the county where
the portable storage unit is located.
### § 35-36-05. Sale of property - Application of proceeds.

At any time before the sale, the lessee may pay the amount necessary to satisfy the lien
and redeem the lessee's property. If a sale is held, the owner shall satisfy the lien from the
proceeds of the sale and hold the balance, if any, for delivery on demand to the lessee or any
other recorded lienholder for a period of six months from the date of sale. Any amount not
claimed by the lessee from the owner within the six-month period is subject to the reporting
requirements of section 47-30.2-04.
### § 35-36-06. Protection of purchaser in good faith.

A purchaser in good faith of any property sold under this chapter takes the property clear of
any rights of persons against whom the lien was valid, subject to the rights of prior lienholders.
### § 35-36-07. Liability of owner.

If the owner complies with this chapter, the owner's liability to the lessee is limited to the
application of the proceeds received from the sale of the property necessary to satisfy the lien.
The owner's liability to other lienholders is limited to the proceeds received from the sale of any
property covered by the other lien, less the amount necessary to satisfy the owner's lien.
### § 35-36-08. Validity of certain rental agreements.

Any rental agreement entered before August 1, 2009, remains valid and may be enforced or
terminated in accordance with its terms or as permitted by law.
### § 35-36-09. Sale proceedings - Titled vehicles.

The sale proceedings in this chapter are sufficient to provide the instruments or documents
of authority to obtain a transfer of title to vehicles under section 39-05-19. However, the rights of
a prior listed lienholder are not affected by this transfer and the department may not remove a
prior lienholder in this transfer of title without a release from the lienholder.
