Possessory Liens/Landlord Liens That Can Trump the Lessors’ Right to Equipment 2

“Possessory lien” means an interest, other than a security interest or an agricultural lien which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business; which is created by statute or rule of law in favor of the person; and whose effectiveness depends on the person's possession of the goods. (KRS § 355.9-333)

Possessory liens recognized in Kentucky include:
Mechanics' and materialman's liens. (KRS 376.010)
Engineers', architects', landscape architects', real estate brokers', and land surveyors' liens. (KRS 376.075)
Lien on farm crop for service by custom operator. (KRS 376.135)
Lien on gas, oil or other mineral leasehold. (KRS 376.140)
Lien of employees on property of a mine, railroad, public improvement company, manufacturing establishment or other business. (KRS 376.150)
Lien for labor, materials, or supplies furnished on public improvement. (KRS 376.210)
Lien on real property for service to retail business by municipal utility. (KRS 376.265)
Lien on motor vehicle for repairs, storage or accessories. (KRS 376.270)
Lien on motor vehicles and contents for towing, recovery, storage, transporting, and other applicable charges. (KRS 376.275)
Lien on aircraft for storage, repairs or accessories. (KRS 376.281)
Lien on watches and jewelry for repairs. (KRS 376.290)
Lien of dry cleaner, launderer, or tailor on article for work done. (KRS 376.300)
Lien for storage and services on article prior to storage. (KRS 376.310)
Lien of keeper of hotel, inn, boarding house or house of private entertainment on personal property of guest for charges. (KRS 376.340)
Liens on steamboats and other vessels for work and supplies. (KRS 376.360)
Lien of keeper of livery stable or agister for care of livestock. (KRS 376.400)
Lien for service fee of stallion, jack, or bull. (KRS 376.420)
Lien on radios, phonographs and other electrical or electronic devices, for repair. (KRS 376.430)
Lien on die, mold, form, or pattern. (KRS 376.435)
Lien on equipment, machinery and motors for work and supplies. (KRS 376.440)
Lien inferior to mortgage or sale unless statement filed. (KRS 376.450)
Attorney's lien. (KRS 376.460)
Veterinarian's lien. (KRS 376.470)
Lien for rent due on space for parking abandoned house trailer or mobile home. (KRS 376.480)

KRS 383.070(1) provides that a landlord renting premises for farming or coal mining purposes shall have a lien on the produce of the premises rented and the fixtures, household furniture and other personal property owned by the tenant or undertenant for a period of up to one (1) year after rent becomes due, but not for any rent which is more than eleven (11) months’ past due. KRS 383.070(2) provides that every other landlord shall have a lien on the fixtures, household furniture, and other personal property of the tenant or undertenant to secure the landlord in the payment of four (4) months’ rent, due or to become due, but such lien shall not be effective for any rent which is past due for more than one hundred and twenty (120) days. KRS 383.070(3) provides that if suit is brought within one hundred twenty (120) days from the time rent is due, landlord’s lien pursuant to KRS 383.070 shall, to the extent of four (4) months’ rent, be superior to and satisfied before other liens upon the personal property of a lessee, assignee or undertenant, created while such property is on the leased premises. (Chiquelin v. Linker, 323 S.W.2d 583, 585 (Ky. 1959)). Should any property be removed from the premises without fraudulent intent, the landlord continues to have a lien for fifteen (15) days from the date of removal. (KRS 383.070(4)).

KRS 383.030 also allows a landlord to file a lien against the personal property of a tenant for past due rent that is not more than one (1) year past due. Landlord must file an affidavit stating that there are reasonable grounds for relief and that the lien is necessary to recoup rent, and the landlord must post a bond with good surety to indemnify the defendant tenant should it appear the lien has been wrongfully filed. (KRS 383.030(1)). A landlord is then allowed to execute against the personal property of the lessee according to KRS 425, governing attachments. (KRS 383.030(2), (3)). In this situation, the landlord’s lien against the tenant’s property is not provided special consideration against a previously perfected UCC security interest.