# Commercial Law (GCL)

## Title 16. Statutory Liens on Personal Property

### Subtitle 2. Lien on Aircraft, Boats, Mobile Homes, and Motor Vehicles

#### Section 16-201

(a) In this subtitle the following words have the meanings indicated.

(b) "Aircraft" includes any part of an aircraft.

(c) "Boat" includes any part of a boat.

(d) "Clerk of the court" means the clerk of the circuit court of a county.

(e) "Mobile home" has the meaning stated in Sec. 8A-101(c) of the Real Property Article.

(f)

  (1) "Motor vehicle" has the meaning stated in Title 11 of the Transportation Article.

  (2) "Motor vehicle" includes any part of a motor vehicle.

(g) "Park owner" has the meaning stated in Sec. 8A-101(f) of the Real Property Article.

(h) "Property" means any aircraft, boat, mobile home, or motor vehicle.

(i) "Resident" has the meaning stated in Sec. 8A-101(j) of the Real Property Article.

#### Section 16-202

(a)

  (1) Any person who, with the consent of the owner, has custody of an aircraft and who, at the request of the owner, provides a service to or materials for the aircraft, has a lien on the aircraft for any charge incurred for any:

    (i) Inspection, maintenance, repair, servicing, or rebuilding;

    (ii) Storage, parking, handling, or tiedown; or

    (iii) Parts, accessories, materials, or supplies.

  (2) The operator of any airport on which an aircraft lands or which is otherwise used by an aircraft has a lien on the aircraft for any landing fee, flight fee, or other charge so incurred.

  (3) A lien is created under this subsection when any charges giving rise to the lien are incurred.

(b)

  (1) Any person who, with the consent of the owner, has custody of a boat and who, at the request of the owner, provides a service to or materials for the boat, has a lien on the boat for any charge incurred for any:

    (i) Repair, rebuilding, maintenance, servicing, or wet or dry wharfage;

    (ii) Storage; or

    (iii) Parts or accessories.

  (2) A lien is created under this subsection when any charges giving rise to the lien are incurred.

(c)

  (1) Any person who, with the consent of the owner, has custody of a motor vehicle and who, at the request of the owner, provides a service to or materials for the motor vehicle, has a lien on the motor vehicle for any charge incurred for any:

    (i) Repair or rebuilding;

    (ii) Storage; or

    (iii) Tires or other parts or accessories.

  (2) A lien is created under this subsection when any charges set out under paragraph (1) of this subsection giving rise to the lien are incurred.

(d)

  (1) A park owner has a lien against a resident's mobile home, if the park owner obtains a judgment against the resident under Title 8A, Subtitle 17 of the Real Property Article, and the resident fails to yield and render possession of the premises as ordered by the court.

  (2) A lien under this subtitle shall be:

    (i) Stayed if the resident files an appeal in accordance with Title 8A, Subtitle 17 of the Real Property Article; and

    (ii) Extinguished if the resident redeems the premises in accordance with Title 8A, Subtitle 17 of the Real Property Article.

  (3) A lien is created under this subsection when the resident fails to yield and render possession of the premises as ordered by the court.

#### Section 16-203

(a) The lienor may retain possession of the property subject to the lien until:

  (1) The charges which give rise to the lien are paid; or

  (2) The lien is otherwise discharged in accordance with this subtitle.

(b)

  (1)

    (i) Except as provided in subparagraph (ii) of this paragraph, within 30 days after the creation of a lien under this subtitle, including a lien created under Sec. 16-207(c) of this subtitle, the lienor shall send notice of the lien by registered or certified mail to all holders of perfected security interests in the property who:

      (1) Are known to the lienor; or

      (2) Can be identified through a search of the public records where filings are made to perfect security interests in the property.

    (ii) For a lien created under Sec. 16-202(b) of this subtitle, the lienor shall send the notice required under subparagraph (i) of this paragraph within 45 days after the creation of the lien.

  (2)

    (i) Subject to subparagraph (ii) of this paragraph, the notice required under paragraph (1) of this subsection shall be sent to the address shown on the document that creates or otherwise gives notice of the perfected security interest.

    (ii) For a lien created under this subtitle in a motor vehicle registered in this State, the notice required under paragraph (1) of this subsection may be sent to the addresses of all holders of perfected security interests in the motor vehicle that are listed in the certified records issued to the lienor by the Motor Vehicle Administration.

  (3) The lienor shall send the notice required under paragraph (1) of this subsection prior to publishing and sending the notice required under Sec. 16-207(b) of this subtitle.

#### Section 16-204

Surrender or delivery of the property subject to the lien discharges that lien against a third person who is without notice of the lien, but does not discharge the lien against the owner or against a third party who has notice of the lien.

#### Section 16-205

(a) An aircraft lien is subordinate only to the rights of the holder of any of the following instruments relating to the aircraft, executed and recorded with the Federal Aviation Administration before the time the lien becomes effective:

  (1) Bill of sale;

  (2) Contract of conditional sale;

  (3) Conveyance; or

  (4) Mortgage or assignment of mortgage.

(b) A motor vehicle lien is subordinate only to a security interest perfected as required by law, except in the case of a motor vehicle sold under Sec. 16-207 of this subtitle.

(c)

  (1) In this subsection, "preferred ship mortgage" means a preferred mortgage as defined in 46 U.S.C. Sec. 31322 on a vessel of the United States that is filed in accordance with 46 U.S.C. Sec.Sec. 31321 through 31330.

  (2)

    (i) A boat lien is subordinate to a preferred ship mortgage that is filed with the Secretary of Transportation before the boat is sold under Sec. 16-207 of this subtitle.

    (ii) Except in the case of a boat sold under Sec. 16-207 of this subtitle, a boat lien is subordinate to a security interest perfected as required by law.

(d) A mobile home lien is subordinate only to a security interest perfected as required by law, except in the case of a mobile home sold under Sec. 16-207 of this subtitle.

#### Section 16-206

(a)

  (1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he may institute appropriate judicial proceedings.

  (2) Institution of the proceedings stays execution under the lien until a final judicial determination of the dispute.

(b)

  (1) If the owner of property subject to a lien disputes any part of the charge for which the lien is claimed, he immediately may repossess his property by filing a corporate bond for double the amount of the charge claimed.

  (2) The bond shall be filed with and is subject to the approval of the clerk of the court of the county where the services or materials for which the lien is claimed were provided.

  (3) The bond shall be conditioned on:

    (i) Full payment of the final judgment of the claim, together with interest;

    (ii) All costs incident to the bringing of suit; and

    (iii) All cost and expenses which result from the enforcement of the lien and are incurred before the lienor was notified that the bond was filed.

  (4) Filing of the bond stays execution under the lien until final judicial determination of the dispute.

  (5) If service of process by a lienor on the owner is returned non est after filing of a bond, service may be made by publication as in the case of a suit against a nonresident.

  (6) If suit is not instituted by the lienor within six months after the bond is filed, the bond is discharged.

#### Section 16-207

(a) If the charges which give rise to a lien are due and unpaid for 30 days and the lienor is in possession of the property subject to the lien, the lienor may sell the property to which the lien attaches at public sale. The sale shall be in a location convenient and accessible to the public and shall be held between the hours of 10 a.m. and 6 p.m.

(b)

  (1) The lienor shall publish notice of the time, place, and terms of the sale and a full description of the property to be sold once a week for the two weeks immediately preceding the sale in one or more newspapers of general circulation in the county where the sale is to be held.

  (2) In addition, the lienor shall send the notice by registered or certified mail at least 10 days before the sale to:

    (i) The owner of the property, all holders of perfected security interests in the property and, in the case of a sale of a motor vehicle or mobile home, the Motor Vehicle Administration;

    (ii) The person who incurred the charges which give rise to the lien, if the address of the owner is unknown and cannot be ascertained by the exercise of reasonable diligence; or

    (iii) "General delivery" at the post office of the city or county where the business of the lienor is located, if the address of both the owner and the person who incurred the charges is unknown and cannot be ascertained by the exercise of reasonable diligence.

(c) If a motor vehicle or mobile home which is subject to a lien is delivered by the lienor to the possession of a third party for storage, and the charges for storage are due and unpaid for 30 days or more, the third party holder is deemed to hold a perfected security interest in the motor vehicle or mobile home notwithstanding Sec. 13-202 of the Transportation Article and may sell the motor vehicle or mobile home in the same manner as the lienor under this section if he has first published and sent notice as required of the lienor under this subtitle.

(d)

  (1) Except as provided in Sec. 13-110 of the Transportation Article, the Motor Vehicle Administration shall issue a title, free and clear of any lien, to the purchaser of any motor vehicle or mobile home sold under this section, if the holder of the lien on the motor vehicle or mobile home submits to the Motor Vehicle Administration a completed application for a certificate of title with:

    (i) A copy of the newspaper publication required by subsection (b) of this section;

    (ii) A copy of the registered or certified letter required under subsection (b) of this section to be sent to holders of perfected security interests in the motor vehicle or mobile home and the Motor Vehicle Administration, and the return card;

    (iii) A copy of the registered or certified letters required by subsection (b) of this section to be sent to the owner of the motor vehicle or mobile home, and the return card;

    (iv) If applicable, a written statement from the lienor that the lienor stored the vehicle in accordance with an agreement with an insurer;

    (v) An auctioneer's receipt;

    (vi) If applicable, certification by holders of perfected security interests;

    (vii) In the case of mobile homes manufactured after 1976 and motor vehicles, a pencil tracing of the vehicle identification number or a statement certifying the vehicle identification number; and

    (viii) Any other reasonable information required in accordance with regulations adopted by the Administration.

  (2) The Department of Natural Resources shall issue a title, free and clear of any liens, to the purchaser of any boat sold under this section.

(e)

  (1) If the notice required under Sec. 16-203(b) of this subtitle was sent, the proceeds of a sale under this section shall be applied, in the following order, to:

    (i) The expenses of giving notice and holding the sale, including reasonable attorney's fees;

    (ii) Subject to subsection (f) of this section, storage fees of the third party holder;

    (iii) The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section;

    (iv) A purchase money security interest; and

    (v) Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interests, but not to exceed the amount of a security interest.

  (2) Except as provided in paragraph (3) of this subsection, if the notice required under Sec. 16-203(b) of this subtitle was not sent, the proceeds of a sale under this section shall be applied, in the following order, to:

    (i) A purchase money security interest;

    (ii) All additional holders of perfected security interests in the property;

    (iii) The expenses of giving notice and holding the sale, including reasonable attorney's fees;

    (iv) Subject to subsection (f) of this section, storage fees of the third party holder;

    (v) The amount of the lien claimed exclusive of any storage fees except as provided in subsection (f)(2) of this section; and

    (vi) Any remaining secured parties of record who shall divide the remaining balance equally if there are insufficient funds to completely satisfy their respective interest, but not to exceed the amount of a security interest.

  (3) For a motor vehicle lien created under this subtitle, if the notice required under Sec. 16-203(b) of this subtitle was not sent:

    (i) The proceeds of a sale under this section shall be applied in the order described in paragraph (1) of this subsection; and

    (ii) The amount of the lien claimed in paragraph (1)(iii) of this subsection may not include any amount for storage charges incurred or imposed by the lienor.

  (4) After application of the proceeds in accordance with paragraph (1) or (2) of this subsection, any remaining balance shall be paid to the owner of the property.

(f)

  (1) If property is stored, storage fees of the third party holder may not exceed $5 per day or a total of $300.

  (2) The exclusion or limitation of any storage fees as provided in subsection (e)(1)(iii) of this section and paragraph (1) of this subsection does not apply to any person who conducts auctions as a business in this State, and is required to maintain records under Sec. 15-113 of the Transportation Article, and that person is also exempt from the maximum storage fee limits under this subsection.

  (3) The notice requirements of Sec. 16-203(b) of this subtitle do not apply when:

    (i) The lienor conducts auctions as a business in this State and is required to maintain records under Sec. 15-113 of the Transportation Article; and

    (ii) The lien arises out of that business.

#### Section 16-208

(a) If the owner of property subject to a lien institutes an action of replevin and establishes a right to the issuance of a writ but for the defendant's alleged lien under this subtitle, the court shall issue the writ.

(b)

  (1) In the trial of the replevin action, the court shall determine:

    (i) The amount of the lien claim, if any; and

    (ii) The amount of any expenses properly incurred or accrued before the trial, including storage and advertising.

  (2) If judgment is for the defendant:

    (i) It may include reasonable attorney's fees; and

    (ii) It shall be either for the property replevied or for the amounts determined in accordance with paragraph (1) of this subsection.

  (3) The defendant has the burden of proof to establish his lien claim to the same extent as if he were a plaintiff in an action to secure judgment on an open account.

#### Section 16-209

The remedies provided in this subtitle for enforcing a lien do not:

(1) Preclude use of any other remedy allowed by law for enforcement of a lien against personal property; or

(2) Bar a right to recover any part of the lienor's claim that is not paid by proceeds from the sale of the property subject to the lien.

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Md. Code Ann., Com. Law (as displayed at mgaleg.maryland.gov, October 16, 2026)