The way a mechanic’s lien is sent to a vehicle owner could change.
Under HF208, sponsored by Rep. David Dill (DFL-Crane Lake), a lien notice would be sent by certified, rather than registered mail.
Approved Feb. 23 by the House Civil Justice Committee, the bill awaits action by the full House.
Dill said registered mail is used to send something of value, such as an expensive watch for repair, but certified mail is a way of notifying someone that they need to pay their debt. A certified letter requires the recipient to sign a card, which is then returned to the sender. The sender is also notified if the recipient refuses to accept the payment notice or refuses to pick it up at the post office after receiving notice of an unsuccessful attempt of its delivery.
Dill said this would save the sender about $8 per lien, the difference in mail cost.
Contractors can file a mechanic’s lien within a certain amount of time if payment has not been received for services rendered. Foreclosure of such a lien occurs when the contractor is paid, sometimes that means when the vehicle is sold at a public auction.
A companion, SF304, sponsored by Sen. Tom Bakk (DFL-Cook), awaits action by the Senate Judiciary Committee.