§ 10-87. Procedure for sale of abandoned and junked motor vehicles.

(a)

If the charges claimed by the town for towing and storage under this chapter remain unpaid or unsatisfied for 30 days following the towing of the motor vehicle, the town may proceed to collect the amounts due it by public or private sale as provided in this section.

(b)

Private sale. Sale by private sale may be made in any manner that is commercially reasonable. If the vehicle to be sold is a motor vehicle, the sale may not be made until notice is given to the commissioner of motor vehicles pursuant to G.S. 20-114(c). Not less than 30 days prior to the date of the proposed private sale, the town shall cause notice to be mailed by certified or registered mail return receipt requested and by first class mail to the person having legal title to the property, if reasonably ascertainable, to the person with whom the town dealt, if different, and to each secured party or other person claiming an interest in the property who is actually known to the town or can be reasonably ascertained. The town shall not purchase, directly or indirectly, the motor vehicle at private sale, and any such sale to the town shall be voided.

(c)

If an owner, the person with whom the town dealt, any secured party, or other person claiming an interest in the motor vehicle notifies the town prior to the date upon or after which the sale by private sale is proposed to be made (but before such sale is completed), that public sale is requested, sale by private sale shall not be made. After request for public sale is received, notice of public sale must be given as if no notice of sale by private sale had been given.

(d)

Public sale.

(1)

Not less than 30 days prior to sale by public sale, the town shall:

a.

Notify the commissioner of motor vehicles, as provided in G.S. 20-114(c), if the property upon which the lien is claimed as a motor vehicle;

b.

Cause notice to be mailed by certified or registered mail return receipt requested and by first class mail to the person having legal title to the motor vehicle if reasonably ascertainable, to the person with whom the town dealt if different, and each secured party or person claiming an interest in the property who is actually known to the town or can be reasonably ascertained;

c.

Advertise the sale by posting a copy of the notice of sale at the courthouse door in the county; and

d.

Publish notice of sale once a week for two consecutive weeks in a newspaper of general circulation in the county, the date of the last publication being not less than five days prior to the sale.

(2)

The public sale must be held on a day other than Sunday and between the hours of 10:00 a.m. and 4:00 p.m. and shall be held in the county.

(3)

The town may purchase at public sale.

(e)

The notice of private or public sale shall include:

(1)

The name and address of the town;

(2)

The name and telephone number of a town representative who can be contacted regarding the sale;

(3)

The name of the person having legal title to the motor vehicle if such person can be reasonably ascertained and the name of the person with whom the town dealt;

(4)

A description of the motor vehicle;

(5)

The amount due for towing and storage charges;

(6)

The place of the sale;

(7)

If a private sale, the date upon or after which the sale is proposed to be made, or if a public sale, the date, location and hour when the sale is to be held.

(f)

Proceeds of the sale shall be applied as follows:

(1)

Payment of reasonable expenses incurred in connection with a sale;

(2)

Payment of all towing and storage charges;

(3)

Any surplus shall be paid to the person entitled thereto; but when such person cannot be found, the surplus shall be paid to the county clerk of superior court to be held by the clerk for the person entitled thereto;

(4)

A purchaser for value at a properly conducted sale, and a purchaser for value without constructive notice of a defect in the sale who is not the town or an agent of the town, acquires title to the motor vehicle free of any interest over which the town was entitled to priority.

(Code 1990, § 11-55; Ord. of 4-13-1988, § 8-3004; Ord. No. 95-002, § 4, 8-8-1995)