Sec. 2. (a) A person that performs labor, furnishes materials or storage, or does repair work on a vehicle at the request of the owner of the vehicle has a mechanic’s lien on the vehicle for the reasonable value of the charges for the labor, materials, storage, or repairs.

     (b) A person that provides towing services for a vehicle at the request of the owner of the vehicle has a mechanic’s lien on the vehicle for the reasonable value of the charges for the towing services and other related costs.

     (c) A person that has a mechanic’s lien on a vehicle under subsection (a) or (b) may advertise the vehicle for sale if the person followed the procedures described in IC 9-22-1-19 and if:

(1) the charges made under subsection (a) or (b) are not paid; and

(2) the vehicle is not claimed;

within thirty (30) days after the date on which the vehicle is left in or comes into the possession of the person for repairs, storage, towing, or the furnishing of materials. The vehicle may not be sold until the later of fifteen (15) days after the date the advertisement required by subsection (d) has been placed or fifteen (15) days after notice required by subsection (e) has been sent.

     (d) Before a vehicle may be sold under subsection (c) or under IC 9-22-1-21.5, an advertisement must be placed in a newspaper that is printed in English and of general circulation in the city or town in which the lienholder’s place of business is located. If the lienholder is located outside the corporate limits of a city or a town, the advertisement must be placed in a newspaper of general circulation in the county in which the place of business of the lienholder is located. The advertisement must contain at least the following information:

(1) A description of the vehicle, including make, year, and manufacturer’s identification number.

(2) The amount of the unpaid charges.

(3) The time, place, and date of the sale.

     (e) In addition to the advertisement required under subsection (d), the person that holds the mechanic’s lien under this section or under IC 9-22-1-21.5(c) must notify the owner of the vehicle and any other person that holds a lien of record, as indicated on the certificate of title of the vehicle or discovered as a result of the search described in IC 9-22-1-19, by certified mail, return receipt requested, at the last known address of the owner or person, as applicable, that the vehicle will be sold at public auction on a specified date to satisfy the mechanic’s lien imposed by this section. If the person who holds the mechanic’s lien has proof that the notice was mailed to the owner of the vehicle and any person who holds a lien of record in accordance with this subsection, actual receipt of the notice is not required.

     (f) A person that holds a mechanic’s lien of record on a vehicle subject to sale under this section or under IC 9-22-1-21.5 may pay the storage, repair, towing, or service charges due. If the person that holds the mechanic’s lien of record elects to pay the charges due, the person is entitled to possession of the vehicle and becomes the holder of the mechanic’s lien imposed by this section.

     (g) If the person that owns a vehicle or the lienholder of a vehicle subject to sale under this section or under IC 9-22-1-21.5 does not claim the vehicle and satisfy the mechanic’s lien on the vehicle, the vehicle may be sold at public sale or public auction to the highest and best bidder. A person that holds a mechanic’s lien under this section may purchase a vehicle subject to sale under this section.

     (h) A person that holds a mechanic’s lien under this section or under IC 9-22-1-21.5 may deduct and retain the amount of the mechanic’s lien, the sale disposal costs, and the cost of the advertisement required under subsection (d) from the purchase price received for a vehicle sold under this section. After deducting from the purchase price the amount of the mechanic’s lien, the sale disposal costs, and the cost of the advertisement, the person shall pay the surplus of the purchase price to the person that holds the first lien of record, as indicated on the certificate of title, of the vehicle. If there is no lien of record, the person shall pay the surplus of the purchase price to the owner of the vehicle, if the owner’s address or whereabouts are known. If the address or whereabouts are not known and there is no lien of record, the surplus of the purchase price shall be sent to:

(1) the abandoned vehicle fund of the city, county, or town from which the vehicle was towed, for vehicles subject to IC 9-22-1; or

(2) the clerk of courts, for all other vehicles, in the jurisdiction in which the business of the person that holds the mechanic’s lien is located, for the use and benefit of the owner of the vehicle.

     (i) The person that holds the first lien of record may deduct and retain the amount of the lien of record from the surplus purchase price transferred to the person under subsection (h). After deducting the amount of the lien of record from the surplus purchase price transferred to the person under subsection (h), the person that holds the first lien of record shall pay any remaining surplus to the owner of the vehicle, if the owner’s address or whereabouts are known. If the address or whereabouts of the owner of the vehicle are not known, the surplus of the purchase price shall be sent to:

(1) the abandoned vehicle fund of the city, county, or town from which the vehicle was towed, for vehicles subject to IC 9-22-1; or

(2) the clerk of the courts for all other vehicles, in the jurisdiction in which the business of the person that holds the mechanic’s lien is located, for the use and benefit of the owner of the vehicle.

     (j) A person that holds a mechanic’s lien under this section shall execute and deliver to the purchaser of a vehicle under this section or under IC 9-22-1-21.5 a sales certificate in the form designated by the bureau, setting forth the following information:

(1) The facts of the sale.

(2) The vehicle identification number.

(3) The certificate of title if available.

(4) A certification from the newspaper showing that the advertisement was made as required under subsection (d).

(5) Any other information that the bureau requires.

Whenever the bureau receives from the purchaser an application for certificate of title accompanied by these items, the bureau shall issue a certificate of title for the vehicle under IC 9-17.

     (k) A person that violates this section commits a Class A infraction.

As added by P.L.125-2012, SEC.158. Amended by P.L.217-2014, SEC.74; P.L.198-2016, SEC.416; P.L.157-2017, SEC.6; P.L.118-2022, SEC.27.