N.Y. Lien Law § 154: Sale procedure for mold lien property

§ 154. Sale procedure for mold lien property. 1. Before a molder may

sell the die, mold, form or pattern the molder shall notify the customer

and the holder of a perfected security interest by registered mail,

return receipt requested. This notice shall include the following

information:

(a) The molder's intention to sell the die, mold, form or pattern

thirty days after the customer's receipt of the notice.

(b) A description of the die, mold, form or pattern to be sold.

(c) The time and place of the sale.

(d) An itemized statement for the amount due.

(e) The notice shall state that if a customer disputes the amount

claimed under the lien, the customer is entitled to bring a proceeding

hereunder within ten days of the service of the notice of sale to

establish the amount of the lien. The proceeding may be brought in any

court which would have jurisdiction to render a judgment for a sum equal

to the amount of the lien.

2. If there is not a return of the receipt of the mailing or if the

postal service returns the notice as being nondeliverable, the molder

shall publish notice of the molder's intention to sell the die, mold,

form or pattern in a newspaper of general circulation in the customer's

last known place of business. The notice shall include a description of

the die, mold, form or pattern.

3. If the sale is for a sum greater than the amount of the lien, the

excess shall be paid to any other lienholder known to the molder at the

time of the sale and any remainder to the customer, if the customer's

address is known, or the state treasurer for deposit in the general fund

if the customer's address is unknown to the molder at the time of the

sale.

4. A sale shall not be made under this section if it would be a

violation of any right of the customer under federal patent or copyright

law.