A. A secured party shall have no liability for rent or other charges to a landlord except as provided in this section.

B. In the event a manufactured home subject to a security interest becomes an abandoned manufactured home, notice of abandonment shall be sent by the landlord to the owner, the secured party and the dealer as provided for in § 55-248.6, at the addresses shown in the lease or rental application. The notice of abandonment shall state the amount of rent and the amount and nature of any reasonable charges in addition to rent that the secured party will become liable for payment to the landlord. The notice shall include any rental agreement previously signed by the tenant and the landlord.

C. A secured party who has a security interest in an abandoned manufactured home, and who has a right to possession of the manufactured home under § 8.9A-609 or under the applicable security agreement, shall be liable to the landlord under the same terms as the tenant was paying prior to the accrual of the right of possession, and any other reasonable charges in addition to rent incurred, for the period which begins fifteen days from receipt of the notice of abandonment by the secured party and ends upon the earlier to occur of the removal of the abandoned manufactured home from the manufactured home park or disposition of the abandoned manufactured home under § 8.9A-610 et seq. or under the applicable security agreement.

D. This section shall not affect the availability of the landlord’s lien as provided in § 55-230 et seq. of Chapter 13 of Title 55, nor shall this section impact the priority of the secured party’s lien as provided in § 46.2-640.

E. As used in this section, “security interest” shall have the same meaning as the term is defined in § 8.1A-201, and “secured party” shall have the same meaning as the term is defined in § 8.9A-102.

F. For purposes of this section, “reasonable charges in addition to rent” means any routine maintenance and utility charges for which the tenant is liable under the rental agreement.

G. Any rent or reasonable charges in addition to rent owed by the secured party to the landlord pursuant to this section shall also be paid to the landlord prior to the removal of the manufactured home from the manufactured home park.

H. If a secured party who has a secured interest in an abandoned manufactured home becomes liable to the landlord pursuant to this section, then the relationship between the secured party and the landlord shall be governed by the rental agreement previously signed by the tenant and the landlord unless otherwise agreed, except that the term of the rental agreement shall convert to a month-to-month tenancy. No waiver is required to convert the rental agreement to a month-to-month tenancy. Either the landlord or the secured party may terminate the month-to-month tenancy upon giving written notice of thirty days or more. The secured party and the landlord are not required to execute a new rental agreement. Nothing in this section shall be construed to be a waiver of any rights by the tenant.

History

1991, c. 500; 1992, c. 709.