MI HB5429

Facility owners have a possessory lien on stored boats and marine equipment for storage, repairs, labor, materials, and related expenses, with priority over prior liens up to specified amounts ($5,000 or 20% of fair market value for vessels under 27 feet; $30,000 for 27-40 feet; $75,000 for 40-60 feet; $90,000 for vessels over 60 feet).

Facility owners must notify property owners and all prior lienholders before enforcing a lien, either through a signed written agreement that includes lien notice or by mailing certified notification to the property owner and secretary of state.

After 180 days of default, facility owners may sell property at a commercially reasonable public sale, with proceeds applied first to sale expenses and the facility owner's lien, then to other lienholders in order of priority, and any surplus to the property owner.

Before conducting a sale, facility owners must mail a notice of default by certified mail including the lien claim amount, due date (minimum 30 days), and sale details, then publish sale advertisements weekly for 2 consecutive weeks with the sale occurring at least 15 days after first advertisement.

Property purchasers at a compliant sale take title free and clear of all liens and property owner rights; facility owners who comply are liable only to the extent of net sale proceeds, and property owners or lienholders may recover actual damages or $250 (whichever is greater) for non-compliance.