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<section article="gcl" article_name="Commercial Law" number="18-504" title_number="18" title_name="Bills of Lading and Warehouse Receipts -- Criminal Provisions" subtitle_number="5" subtitle_name="Maryland Self-Service Storage Act">
  <level label="a">
    <level label="1">
      <text>If the occupant is in default for a period of more than 60 days, the operator may enforce the lien by selling the personal property stored in the leased space at a public sale, for cash.</text>
    </level>
    <level label="2">
      <text>Proceeds from the sale shall be applied to satisfy the lien, and any surplus shall be disbursed as provided in subsection (e) of this section.</text>
    </level>
  </level>
  <level label="b">
    <level label="1">
      <text>Before conducting a sale under subsection (a) of this section, the operator shall, subject to paragraph (2) of this subsection, notify the occupant of the default by hand delivery, verified mail, or electronic mail at the occupant’s last known address.</text>
    </level>
    <level label="2">
      <level label="i">
        <text>The operator may not notify the occupant of the default by electronic mail unless:</text>
        <level label="1">
          <text>The rental agreement, or a written change to the rental agreement, specifies, in bold type, that notice may be given by electronic mail; and</text>
        </level>
        <level label="2">
          <text>The occupant provides the occupant’s initials next to the statement in the rental agreement specifying that notice of default may be given by electronic mail.</text>
        </level>
      </level>
      <level label="ii">
        <text>If the operator notifies the occupant of the default by electronic mail at the occupant’s last known address and does not receive a response sent from the occupant’s electronic mail address or a confirmation of delivery, the operator shall send a second notice of default to the occupant by verified mail to the occupant’s last known postal address.</text>
      </level>
    </level>
    <level label="3">
      <text>The notice shall include:</text>
      <level label="i">
        <text>A statement that the contents of the occupant’s leased space are subject to the operator’s lien;</text>
      </level>
      <level label="ii">
        <text>A statement of the operator’s claim, indicating the charges due on the date of the notice, the amount of any additional charges which shall become due before the date of sale, and the date those additional charges shall become due;</text>
      </level>
      <level label="iii">
        <text>A demand for payment of the charges due within a specified time, not less than 14 days after the date that the notice was mailed;</text>
      </level>
      <level label="iv">
        <text>A statement that unless the claim is paid within the time stated, the contents of the occupant’s space will be sold at a specified time and place; and</text>
      </level>
      <level label="v">
        <text>The name, street address, and telephone number of the operator, or his designated agent, whom the occupant may contact to respond to the notice.</text>
      </level>
    </level>
    <level label="4">
      <level label="i">
        <text>Subject to subparagraph (ii) of this paragraph, at least 10 days before conducting a sale under this section, the operator shall notify the occupant of the time, place, and terms of the sale by hand delivery, verified mail, or electronic mail at the occupant’s last known address.</text>
      </level>
      <level label="ii">
        <text>If an operator notifies the occupant of the sale by electronic mail at the occupant’s last known address and does not receive a response sent from the occupant’s electronic mail address or a confirmation of delivery at least 5 days before the sale, the operator shall promptly send a second notice of sale to the occupant by verified mail to the occupant’s last known postal address.</text>
      </level>
    </level>
    <level label="5">
      <text>At least 3 days before conducting a sale under this section, the operator shall advertise the time, place, and terms of the sale:</text>
      <level label="i">
        <text>In a newspaper of general circulation in the jurisdiction where the sale is to be held;</text>
      </level>
      <level label="ii">
        <text>By electronic mail; or</text>
      </level>
      <level label="iii">
        <text>On an online website.</text>
      </level>
    </level>
  </level>
  <level label="c">
    <text>At any time before a sale under this section, the occupant may pay the amount necessary to satisfy the lien and redeem the occupant’s personal property.</text>
  </level>
  <level label="d">
    <level label="1">
      <text>A sale under this section shall be held at the self–service storage facility where the personal property is stored.</text>
    </level>
    <level label="2">
      <text>A sale under this section shall be deemed to be held at the self–service storage facility where the personal property is stored if the sale is held on an online auction website.</text>
    </level>
  </level>
  <level label="e">
    <level label="1">
      <text>If a sale is held under this section, the operator shall:</text>
      <level label="i">
        <text>Satisfy the lien from the proceeds of the sale; and</text>
      </level>
      <level label="ii">
        <text>Mail the balance, if any, by certified mail to the occupant or any other recorded lienholder at the last known address of the occupant or lienholder.</text>
      </level>
    </level>
    <level label="2">
      <level label="i">
        <text>If the balance is returned to the operator after the operator mailed the balance in the manner required under paragraph (1)(ii) of this subsection, the operator shall hold the balance for 1 year after the date of sale for delivery on demand to the occupant or any other recorded lienholder.</text>
      </level>
      <level label="ii">
        <text>After expiration of the 1 year period, the balance is presumed abandoned under § 17–307.1 of this article.</text>
      </level>
    </level>
  </level>
  <level label="f">
    <text>A purchaser in good faith of any personal property sold under this subtitle takes the property free and clear of any rights of:</text>
    <level label="1">
      <text>Persons against whom the lien was valid; and</text>
    </level>
    <level label="2">
      <text>Other lienholders.</text>
    </level>
  </level>
  <level label="g">
    <text>If the operator complies with the provisions of this subtitle, the operator’s liability:</text>
    <level label="1">
      <text>To the occupant shall be limited to the net proceeds received from the sale of the personal property; and</text>
    </level>
    <level label="2">
      <text>To other lienholders shall be limited to the net proceeds received from the sale of any personal property covered by that other lien.</text>
    </level>
  </level>
  <level label="h">
    <text>If an occupant is in default, the operator may deny the occupant access to the leased space.</text>
  </level>
  <level label="i">
    <level label="1">
      <level label="i">
        <text>Notices sent to the operator shall be sent to the self–service storage facility where the occupant’s personal property is stored by hand delivery or verified mail.</text>
      </level>
      <level label="ii">
        <text>Notices to the occupant shall be sent to the occupant at the occupant’s last known address.</text>
      </level>
    </level>
    <level label="2">
      <text>Notices shall be deemed delivered when:</text>
      <level label="i">
        <text>Deposited with the United States Postal Service or a private delivery service, properly addressed as provided in subsection (b) of this section, with postage prepaid; or</text>
      </level>
      <level label="ii">
        <text>Sent by electronic mail to the occupant’s last known address.</text>
      </level>
    </level>
  </level>
  <level label="j">
    <level label="1">
      <text>If the occupant is in default for more than 60 days and the personal property stored in the leased space is a motor vehicle or watercraft, the operator may have the personal property towed or removed from the self–service storage facility in lieu of a sale authorized under subsection (a) of this section.</text>
    </level>
    <level label="2">
      <text>The operator shall be immune from civil liability for any damage to the personal property towed or removed from the self–service storage facility under paragraph (1) of this subsection that occurs after the person that undertakes the towing or removal of the personal property takes possession of the personal property.</text>
    </level>
  </level>
  <level label="k">
    <text>If a rental agreement specifies a limit on the value of personal property that may be stored in the occupant’s leased space, the limit shall be deemed to be the maximum value of the stored personal property.</text>
  </level>
  <level label="l">
    <level label="1">
      <text>The operator may charge the occupant a reasonable late fee for each month the occupant does not pay rent when due.</text>
    </level>
    <level label="2">
      <text>A fee under this subsection may not be more than the greater of:</text>
      <level label="i">
        <text>$20 a month; or</text>
      </level>
      <level label="ii">
        <text>20% of the monthly rent for the leased space.</text>
      </level>
    </level>
    <level label="3">
      <text>The operator may not charge a fee under this subsection unless the operator discloses in the rental agreement:</text>
      <level label="i">
        <text>The amount of the fee; and</text>
      </level>
      <level label="ii">
        <text>The timing for charging the fee.</text>
      </level>
    </level>
    <level label="4">
      <text>A fee under this subsection may be charged in addition to any other remedy provided by law or contract.</text>
    </level>
  </level>
</section>
