NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

 

 

CHAPTER 512

SENATE BILL 275

 

 

AN ACT TO AUTHORIZE SALE OF STORED MOTOR VEHICLES WHICH ARE UNCLAIMED AFTER A PERIOD OF 90 DAYS, TO PROVIDE FOR PAYMENT OF COSTS OF SALE AND TO PROVIDE FOR ESCHEAT OF EXCESS PROCEEDS OF SALE.

 

The General Assembly of North Carolina do enact:

 

Section 1.  G.S. 20-77(d) is rewritten to read as follows:

"(d)      An operator of a place of business for garaging, repairing, parking or storing vehicles for the public, in which a vehicle remains unclaimed for 30 days, shall within five days after the expiration of that period, report the vehicle as unclaimed to the department. Failure to make such report shall constitute a misdemeanor punishable by fine not to exceed fifty dollars ($50.00) or imprisonment not to exceed 30 days, or both, in the discretion of the court.

Any vehicle which remains unclaimed for a period of 90 days after report is made to the department may be sold by such operator in accordance with the following procedure:

(1)        The garage owner or storage keeper shall give written notice to the person who made the storage, to the registered owner, if known, and to any other persons known to claim any lien on or other interest in the motor vehicle. Such notice shall be given by delivery to the person, or by registered letter addressed to the last known place of business or abode of the person to be notified.

(2)        The notice shall contain a description of the motor vehicle and a demand that the vehicle be claimed on or before a day specified, not less than ten days from the delivery of the notice if it is personally delivered or from the time when the notice should reach its destination according to the due course of post if the notice is sent by mail; and a statement that unless the vehicle is claimed on or before the day specified, it will be advertised for sale and sold at auction at a specified time and place.

(3)        If the vehicle is not claimed by the day specified in the notice, a sale of the motor vehicle may be had. The sale shall be held at the place where the vehicle was stored, or if such place is manifestly unsuitable for the purpose, at the courthouse in the county where vehicle was stored. The advertisement of such sale shall contain the name and address of the registered owner of the vehicle, if known or ascertainable; the name and address of the person who made the storage; a description of the motor vehicle, including the make, year of make, model, motor number, serial number and license number, if any; and the place, date and hour of sale. The advertisement shall be published once a week for two consecutive weeks in a newspaper published in the place where such sale is to be held. The sale shall not be held less than 15 days from the time of the first publication. If there is no newspaper published in such place, the advertisement shall be posted at least ten days before such sale in not less than three conspicuous public places in such place. A notice of sale on a form approved by the Department shall be sent to the Commissioner of Motor Vehicles at least 20 days prior to the sale. From the proceeds of the sale the garage owner or storage keeper shall satisfy the reasonable charges of notice, advertisement and sale. The balance, if any, shall be held by the garage owner or storage keeper and delivered on demand to the person to whom he would have been bound to deliver or justified in delivering the motor vehicle. If no claim is made for said balance within ten days, the garage owner or storage keeper shall immediately pay such balance into the office of the clerk of the superior court of the county wherein the sale was held, and the clerk shall hold said money for 12 months for delivery on demand to person entitled thereto, and if no claim is made within said period, said balance shall escheat as provided in Article IX, Section 10, of the North Carolina Constitution.

(4)        At any time before the motor vehicle is so sold any person claiming a right of property or possession therein may pay the garage owner or storage keeper the amount necessary to pay the reasonable expenses and liabilities incurred in serving notices and advertising and preparing for the sale up to the time of such payment, and upon receiving such payment, the garage owner or storage keeper shall deliver the motor vehicle to the person making such payment if he is a person entitled to the possession thereof.

(5)        Any person selling a vehicle under the provisions of this subsection shall remove any unexpired registration plates attached thereto and return them to the department."

Sec. 2.  This act shall become effective upon ratification.

In the General Assembly read three times and ratified, this the 7th day of June, 1971.