(A) Any person engaged in the business of storing or towing motor vehicles who has complied with the notification requirements of KRS 281.928 shall have a lien on the motor vehicle and its contents, except as set forth in KRS 376.275(2), for the applicable and reasonable charges assessed in accordance with KRS 281.926 and 281.932, as long as it remains in his or her possession.
(B) If, after a period of 45 days, the applicable and reasonable charges assessed in accordance with KRS 281.926 and 281.932 have not been paid, the motor vehicle and its contents, except as set forth in KRS 376.275(2), may be sold to pay the charges after the owner and any lien holder have been notified by certified mail at the addresses specified in KRS 281.928(1), ten days prior to the time and place of the sale. If the proceeds of the sale of any vehicle pursuant to this section are insufficient to satisfy accrued charges, the sale and collection of proceeds shall not constitute a waiver or release of responsibility for payment of unpaid charges by the owner or responsible casualty insurer of the vehicle. A lien on a vehicle under this division shall be subject to prior recorded liens, unless released by any existing lien holder pursuant to division (C).
(C) A lien holder having a prior recorded lien listed on the title issued by the Commonwealth of Kentucky shall be notified by certified mail within the first ten days of impoundment in accordance with KRS 281.928. Such notification, in addition to the requirements of KRS 281.928, shall include the make, model, license number, vehicle identification number, owner's name and last known address, and tentative date of sale for the vehicle, and state that the towing company or storage facility seeks to obtain a new title free and clear of any liens, excluding tax liens. If the above-referenced certified letter is not sent within the ten days by the towing and storage company, then only ten days of storage may be charged. The lien holder has the right to take possession of the motor vehicle after showing proof of lien still enforced, and paying the reasonable or agreed towing and storage charges on the motor vehicle. If a lien holder does not exercise the right to take possession of the motor vehicle under this division within 45 days of notification, and all lien holders agree in writing, the towing company or storage facility may obtain a new title under KRS 186A.145 free and clear of any liens, excluding tax liens. Nothing in this section shall allow the transfer of a vehicle subject to a lien, except as provided in KRS 186A.190.
(D) If there are no lien holders required to be notified under KRS 281.920 to 281.936 and 359.230 and this section, and the owner does not exercise the right to take possession of the motor vehicle under this section within 45 days of notification required under KRS 281.928, the towing company or storage facility may obtain a new title under KRS 186A.145 free and clear of any liens, excluding tax liens.
(KRS 376.275(1))
Statutory reference:
Provisions concerning disposition of contents of motor vehicle, see KRS 376.275(2)