Senate Bill No. 482
(By Senator Helmick)
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[Introduced March 22, 1993; referred to the Committee
on the Judiciary.]
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A BILL to amend and reenact sections thirteen and eighteen,
article six, chapter thirty-seven of the code of West
Virginia, one thousand nine hundred thirty-one, as amended,
relating to property subject to distress for landlord's
lien; and establishing the extent that goods subject to a
purchase money security interest may be subjected to
distress and levy in satisfaction of landlord's lien.
Be it enacted by the Legislature of West Virginia:
That sections thirteen and eighteen, article six, chapter
thirty-seven of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, be amended and reenacted to read
as follows:
ARTICLE 6. LANDLORD AND TENANT.
§37-6-13. Property subject to distress.
The distress may be levied on any goods of the lessee, or
his assignee or undertenant, found on the premises, or which may
have been removed therefrom not more than thirty days. If thegoods of such lessee, assignee or undertenant, when carried on
the premises, are subject to a lien which is valid against his
creditors, his interest only in such goods shall be liable to
such distress. If any lien be created thereon while they are
upon the leased premises, they shall be liable to distress, but
for not more than one year's rent, whether it shall have accrued
before or after the creation of the lien:
Provided,
That if the
goods on the premises are subject to a purchase money security
interest, as defined in section one hundred seven, article nine,
chapter forty-six of this code, that is perfected on, or that,
due to relation back, is effective as of, a date within the sixty
day period commencing on the date the goods are carried on the
leased premises, then the goods shall be liable to distress only
to the extent of the interest of the lessee, assignee or
undertenant in such encumbered goods. No goods shall be liable
to distress other than such as are declared to be so liable in
this section.
§37-6-18. Removal of goods by third party having lien.
If, after the commencement of any tenancy, a lien be
obtained or created by trust deed, mortgage, or otherwise, upon
the interest or property in goods on premises leased or rented,
of any person liable for the rent, the party having such lien may
remove such goods from the premises on the following terms, and
not otherwise, that is to say: On the terms of paying to the
person entitled to the rent, so much as is in arrear, and
securing to him so much as is to become due; what is so paid orsecured not being more altogether than a year's rent in any case:
Provided,
That if the party removing the goods has a purchase
money security interest in the goods, as defined in section one
hundred seven, article nine, chapter forty-six of this code, that
is perfected on, or that, due to relation back, is effective as
of, a date within the sixty day period commencing on the date the
goods are carried on the leased premises, then the party having
such a lien may remove the goods from the premises without the
requirement of any payment to the persons entitled to rent for
the leased premises. If the goods be taken under legal process,
the officer executing it shall, out of the proceeds of the goods,
make such payment of what is in arrear; and, as to what is to
become due, he shall sell a sufficient portion of the goods on a
credit till then, taking from the purchaser bond, with good
security, payable to the person so entitled, and delivering such
bond to him. If the goods be not taken under legal process, such
payment and security shall be made and given before their
removal. Neither this nor any other section of this article
shall affect any lien for taxes or levies.
NOTE: The purpose of this bill is to determine when and to
what extent that goods subject to a purchase money security
interest may be subjected to distress and levy in satisfaction of
a landlord's lien.
Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.