[§271-28.5]  Motor carrier lien.  (a) In addition to the lien provided by section 490:7-307, a carrier has a lien onfreight in its possession for the total amount owed the carrier by the shipperfor freightage, charges for services and advances due on freight previouslydelivered upon the promise of the shipper to pay freightage, charges andadvances, as provided in this section.

(b)  The lien provided by this section shallnot arise:

(1)  Unless the carrier has given the shipper and theconsignee ten days notice in writing, that failure to pay billed charges mayresult in a lien on future shipments; or

(2)  As to any freight which consists of perishablegoods; or

(3)  As to any freight, the freight charges for whichhave been prepaid by the consignee or the intended recipient; or

(4)  As to any freight, if the applicable charges werepaid to a third party legally obligated to remit the payment to the carrier butthe amount due has not been received by the carrier; or

(5)  As to any property legally owned by anyone otherthan the debtor, or as to which the current identity of the owner is unknown.

(c)  Except as otherwise provided in thissection, the notice and sale provisions of section 490:7-308, shall apply tothe sale of property subject to a lien provided by this section.

(d)  No sale of property subject to a lienprovided by this section may take place for at least thirty-five days from thedate that possession of the property is delivered to the carrier but the noticeperiod set forth in section 490:7-308 may run concurrently with thethirty-five-day period provided by this [subsection].  In addition to thenotices required by section 490:7-308, the lienholder, at least ten days priorto any sale of the property, shall notify the shipper and the consignee of theproperty, and each secured party having a perfected security interest in theproperty, of the date, time and place of the intended sale.  This notice shallinclude the names of both the shipper and the consignee and shall describe theproperty to be sold.

(e)  Any perfected security interest in theproperty is prior to the lien provided by this section.  No sale of theproperty may be concluded if the amount bid at the sale is not at least equalto the total amount of all outstanding obligations secured by a perfectedsecurity interest in the property.  If the minimum bid required for the sale ofproperty pursuant to this [subsection] is not received, the lienholder shallpromptly release the property to the legal owner upon payment of the currentamount for freightage, charges for services and advances due for shipment ofthat property, not including amounts due on freight previously delivered.

The proceeds of the sale shall be applied asfollows:

(1)  First, to secured parties having a perfectedsecurity interest, in the amounts to which they are respectively entitled.

(2)  Second, to the discharge of the lien provided bythis section.

(3)  The remainder, if any, to the legal owner of theproperty.

In the event of any violation by the lienholderof any provision of this [subsection] the lienholder shall be liable to anysecured party for all damages sustained by the secured party as a resultthereof plus all expenses reasonably and necessarily incurred in theenforcement of the secured party's rights, including reasonable attorney's feesand costs of suit.

(f)  The shipper shall be liable to theconsignee for any damage which results from the failure of the property toreach the consignee as scheduled due to the carrier's proper exercise of itslien rights pursuant to this section.

(g)  The carrier shall be liable to theconsignee for any damage which results from the failure of the property toreach the consignee as scheduled due to the carrier's violation or misuse ofany lien obtained under this section.  The measure of damages shall bedetermined as set forth in section 490:2-713. [L 1986, c 203, §1]