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Terms & Conditions v1.2

1.  Client Certifications

For each lien order submitted, Client certifies that:

•  Client lawfully possesses the vehicle(s) identified in the order.

•  Client is duly authorized and licensed to perform the services for which a lien is being claimed.

•  All charges, invoices, and claims submitted are accurate, lawful, and reflect services actually rendered.

•  All storage charges began accruing from service completion (or another lawful trigger event) and were properly authorized in writing prior to accrual, in compliance with NYS DMV Regulation 82.8(c).

•  Client has complied with all applicable requirements of the Driver’s Privacy Protection Act (DPPA) with respect to any vehicle owner or registrant information obtained in connection with the lien.

•  Client has not taken any action — including commencement of a lien, imposition of storage charges, or scheduling of auction — that would be premature, unauthorized, or otherwise contrary to applicable law.

•  Client is the party with authority to bind the business entity submitting this order and has full legal authority to enter into these Terms.

2.  Scope of Lien Onit’s Services

Lien Onit’s role is strictly administrative. Lien Onit provides lien processing and compliance support services on behalf of Client pursuant to New York Lien Law §201 and NYS DMV Form 901-C, including preparation and filing of DMV forms, legal notice preparation, and coordination of publication requirements. All such acts are ministerial in nature, performed in reliance solely on information and certifications provided by Client, and do not constitute participation in, supervision of, direction of, or control over the lien enforcement process, the vehicle auction, or any vehicle disposition. Preparation of statutory notice documents and DMV filings by Lien Onit does not make Lien Onit a participant in the underlying lien transaction or a party with independent knowledge of, or responsibility for, the validity of Client’s lien claim or the adequacy of Client’s underlying charges.

Lien Onit does not:

•  Conduct, supervise, or participate in any vehicle auction;

•  Authorize, set, or approve any storage charges or repair invoices;

•  Make any determination regarding the legal sufficiency of Client’s underlying lien claim;

•  Act as Client’s agent for purposes of any subsequent vehicle sale or disposition;

•  Hold possessory interest in, take custody of, or exercise any dominion or control over any subject vehicle at any time.

Client retains full responsibility for all business decisions related to the lien, including but not limited to storage rates, auction conduct, vehicle disposition, and compliance with all applicable laws governing the underlying claim.

Lien Onit’s services are provided to licensed businesses on a business-to-business basis. Lien Onit makes no representations to vehicle owners, registrants, lienholders, or consumers in its own capacity, has no consumer-facing role in any lien transaction, and does not direct or control any communications with such parties beyond the statutory notice documents prepared on Client’s behalf.

3.  Client Responsibilities

Client agrees to:

•  Act as its own agent in any subsequent vehicle sale, ensuring full compliance with all applicable New York State laws and regulations, including NY Lien Law §§ 184, 201, and 202.

•  Conduct any auction in a commercially reasonable manner, maintain complete documentation of auction proceedings, and retain all records related to the lien for a minimum of seven (7) years.

•  Notify Lien Onit promptly if a lien is settled, withdrawn, contested, or otherwise resolved prior to or after auction, so that accurate records may be maintained.

•  Cooperate fully with Lien Onit in the event of any legal challenge, demand, or inquiry related to a submitted order, and promptly provide any documentation requested.

•  Retain independent legal counsel if any dispute, claim, or legal proceeding arises in connection with a lien. Lien Onit does not provide legal advice and is not a party to any such proceeding.

3a.  Third-Party Lienholder Notification

Lien Onit will serve notice on the vehicle owner and all lienholders of record as identified in the official NYS DMV Vehicle Record Report obtained at the time of processing. This report is the statutorily contemplated source of party identification under NY Lien Law §201, and Lien Onit’s reliance on it is both legally appropriate and the full extent of Lien Onit’s independent investigative obligation. Lien Onit bears no duty to search UCC filings, title records, or any source other than the official DMV Vehicle Record Report to identify interested parties. Client acknowledges that:

•  Lien Onit’s notice obligations extend only to parties appearing on the DMV Vehicle Record Report at the time of the search;

•  Any lienholder or interested party not reflected on the DMV record at the time of the search is outside the scope of Lien Onit’s notice services;

•  Client is responsible for identifying and disclosing to Lien Onit any known lienholder, security interest holder, or other interested party that may not appear on the DMV record;

•  Any challenge to the adequacy of notice based on a party not appearing in the DMV Vehicle Record Report is the sole responsibility of Client.

3b.  Demand Letters, Stop-Sale Notices, and Legal Challenges

In the event Lien Onit receives any demand letter, stop-sale notice, cease-and-desist, or other legal challenge from a third party related to a lien order submitted by Client, Lien Onit will promptly forward such communication to Client. Client acknowledges that:

•  Lien Onit has no authority to cancel, postpone, or modify a scheduled lien sale;

•  The decision to proceed with, postpone, or cancel any lien sale in response to a third-party demand rests solely with Client as lienor;

•  Lien Onit’s forwarding of any demand to Client does not constitute legal advice or a recommendation regarding how Client should respond;

•  Client shall immediately notify Lien Onit if Client receives any demand, legal process, court order, or notice of legal proceeding related to any lien order processed by Lien Onit;

•  If Lien Onit is named as a party in any legal proceeding arising from Client’s lien order, Client’s duty to defend and indemnify Lien Onit under Section 5 is immediately triggered.

3c.  Consumer Protection Statutes; B2B Services Only

Lien Onit’s services are provided exclusively on a business-to-business basis to licensed lienors. Lien Onit has no direct relationship with vehicle owners, lessees, registrants, or consumers, and assumes no obligations to any such parties under any consumer protection statute, including but not limited to NY General Business Law §349 (“GBL 349”) or NY Vehicle and Traffic Law §198-d. Client acknowledges that:

•  All consumer-facing obligations arising from the lien, including compliance with GBL 349, V&T §198-d, and any other consumer protection law applicable to storage charges, lien enforcement, or vehicle disposition, rest solely with Client as the lienor and operator of the subject vehicle storage or repair business;

•  Lien Onit’s preparation of statutory notice documents does not make Lien Onit a consumer-oriented business, a direct actor in any consumer transaction, or a party subject to consumer protection claims arising from Client’s lien or storage practices;

•  Client agrees to indemnify and defend Lien Onit against any claim, action, or proceeding brought under GBL 349, V&T §198-d, or any other consumer protection statute arising from or related to Client’s lien, storage charges, auction conduct, or vehicle disposition, including any claim that alleges Lien Onit’s administrative participation made it jointly liable for Client’s consumer-facing practices.

4.  Service Fees and No-Refund Policy

Upon submission of a lien order, the Client acknowledges that the applicable service fee is immediately due and non-refundable. Lien Onit’s fees reflect the administrative work initiated at the time of submission and are not contingent upon the resolution or outcome of the underlying lien claim.

5.  Indemnification and Duty to Defend

Client agrees to indemnify, defend, and hold harmless Lien Onit LLC, its officers, employees, and agents from and against any and all claims, demands, liabilities, damages, costs, and expenses (including reasonable attorneys’ fees) arising out of or related to:

•  Any inaccuracy, misrepresentation, or omission in information provided by Client to Lien Onit;

•  Client’s failure to comply with applicable laws, regulations, or DMV requirements governing the underlying lien claim;

•  Any storage charges, repair charges, or auction practices that are unauthorized, unlawful, or commercially unreasonable;

•  Any act or omission by Client in connection with the lien, vehicle auction, or vehicle disposition;

•  Any third-party claim, action, or proceeding — including any attempt to join or name Lien Onit as a party — arising from or related to a lien order submitted by Client.

Client’s duty to defend is separate from and in addition to Client’s obligation to indemnify. Client shall immediately notify Lien Onit in writing upon receiving any court filing, Order to Show Cause, summons, complaint, subpoena, or other legal process that names, references, or could implicate Lien Onit, regardless of whether Lien Onit has been formally served. Failure to provide timely notice constitutes a material breach of these Terms and shall expand Client’s indemnification obligations to include any additional costs, exposure, or prejudice suffered by Lien Onit as a result of the delay. Upon notice that Lien Onit has been named or threatened to be named as a party in any proceeding arising from Client’s lien order, Client shall:

•  Immediately retain counsel to defend Lien Onit in such proceeding at Client’s sole cost and expense;

•  Reimburse Lien Onit for all reasonable attorneys’ fees, costs, and expenses incurred by Lien Onit in responding to, appearing in, or defending against such proceeding, including costs of responding to subpoenas and appearing as a fact witness;

•  Not settle any claim against Lien Onit without Lien Onit’s prior written consent.

6.  Limitation of Liability

In the event of any claim arising from negligence, error, or omission by Lien Onit in the performance of its administrative services, Client’s sole and exclusive remedy shall be limited to a refund of the lien processing fee paid for the specific order in question. Lien Onit shall not be liable for any indirect, incidental, consequential, or punitive damages of any nature.

DMV acceptance of a filing does not constitute a guarantee of legal sufficiency. A lien may be successfully filed with the DMV and still be subject to challenge on statutory or procedural grounds. Such challenges may arise from factors within Lien Onit’s administrative scope — including form preparation, mailing, or publication — for which Client’s sole remedy is a refund of the applicable processing fee as set forth above, or from factors within Client’s sole control — including the validity of the underlying lien claim, the lawfulness of storage charges, the adequacy of written storage authorization, and the conduct of the auction — for which Lien Onit bears no responsibility. Client assumes all risk associated with factors within Client’s control and agrees that Lien Onit’s limitation of liability governs any claim arising from factors within Lien Onit’s administrative scope.

Client’s prepared lien documentation/process has not been reviewed by counsel; attorney review is recommended to confirm compliance with all applicable NY Lien Law requirements.

7.  Notice and Service of Process

Lien Onit’s standard process uses certified mail with return receipt to serve notice on vehicle owners and registrants. The New York DMV accepts certified mail documentation for title transfer purposes, and the overwhelming majority of lien matters are resolved at this stage.

However, when the garage and the vehicle owner or registrant are located in the same county, New York State law technically requires personal service — hand delivery by a process server — rather than certified mail. Client acknowledges the following:

•  In same-county situations, certified mail does not satisfy the strict personal service requirement under NY Lien Law §201;

•  In the event a vehicle owner challenges a lien in court, a judge may invalidate the lien on the basis that personal service was not completed;

•  This risk increases proportionally with the value of the vehicle and the likelihood that an owner will retain counsel to contest the lien;

•  Lien Onit identifies and notifies Client of same-county situations so that Client can make an informed service method decision for that order.

The decision to proceed with certified mail or to request personal service is a business decision that rests solely with Client and is outside the scope of Lien Onit’s standard administrative services.

8.  No Ownership Transfer

Completion of the lien process does not, by itself, transfer ownership of any vehicle to Client. Title transfer is governed by applicable New York State law and DMV procedures, and Client is solely responsible for compliance with all requirements related to vehicle title and disposition. Lien Onit does not apply for, obtain, or hold title to any vehicle in connection with its lien processing services. Lien Onit makes no warranty, representation, or guarantee as to the legal validity of any title issued by the NYS DMV following submission of lien documentation. In the event any title is declared void, rescinded, cancelled, or otherwise invalidated by a court, the DMV, or any other authority — whether on the grounds of defective notice, invalid underlying lien, procedural non-compliance, or any other basis — such outcome is solely the responsibility of Client as lienor. Client’s indemnification obligations under Section 5 apply fully to any claim, proceeding, or loss arising from or related to a title voiding or rescission.

9.  Governing Law

These terms shall be governed by and construed in accordance with the laws of the State of New York. Any dispute arising hereunder shall be resolved exclusively in the courts of Nassau County, New York.

10.  Entire Agreement

These Terms & Conditions, together with any signed lien order authorization form executed by Client, constitute the entire agreement between Lien Onit and Client with respect to lien processing services. These terms are intended to operate alongside and supplement any signed order form — they do not supersede or replace any specific indemnification, attestation, or authorization language contained in a signed order form. In the event of any conflict between these terms and a signed order form, the provision most protective of Lien Onit shall govern.

These terms supersede all prior standalone terms agreements, understandings, or representations between the parties, whether written or oral, relating to lien processing services.

11.  Updates to These Terms

Lien Onit reserves the right to update these Terms & Conditions at any time. When material changes are made, Lien Onit will:

•  Update the version number and effective date on this page;

•  Notify active clients by email at the address on file at least fourteen (14) days prior to the effective date of material changes;

•  Maintain a version archive accessible upon request, so that the terms applicable to any specific order can be confirmed by reference to the order date.

Continued submission of lien orders following the effective date of any updated terms constitutes acceptance of the revised terms. Clients who do not agree to revised terms should contact Lien Onit prior to the effective date

Lien Onit LLC  |  31 Covert Ave #8, Floral Park, NY 11001  |  212-653-0136
Version 1.2  |  Effective July 2026

Previous Terms & Conditions: Version 1.1