The Senate Civil Law Committee heard HB 1511, sponsored by Sen. Messmer and Sen. Ford, on liens on abandoned or towed vehicles. This bill specifies that a lienholder’s failure to comply with certain notice requirements may result in civil damages. It also provides that proof of receipt of notice for a mechanic’s lien by the owner of a vehicle subject to the mechanic’s lien is not required in certain instances and that proof of receipt of notice regarding a mechanic’s lien is required for persons in possession of a lien of record on a towed or abandoned vehicle unless the notice is refused by the addressee or otherwise returned to the sender as undeliverable.
The bill was amended by consent to clarify the notification procedure for the vehicle owner and the distribution of funds from the vehicle sale. Representatives from the Indiana Credit Union League, Indiana Bankers Association, Indiana Towing and Wreckers Association, and Auto Return testified in favor of the bill. The amended bill passed 7-0.
Read the bill at https://iga.in.gov/legislative/2017/bills/house/1511