Meaning
Statutory provisions in the state of Ohio grant plastic tool and die makers a legal claim over the equipment they manufacture or repair to secure payment. Under ohio revised code 1333.29, a moulder or builder can retain possession of a tool or follow specific notice procedures to sell the asset to satisfy an outstanding debt. This law protects the investment of the service provider when a customer defaults on an invoice for a custom-built mould.
It covers the costs of labor, materials and any modifications made to the tooling. The statute provides a clear path for recovery without requiring a prior written security agreement.
Lien Right
Legal possession allows the toolmaker to hold the mould as collateral until the customer settles the balance. This right attaches automatically when the work is performed and the tool remains in the shop. If the tool is voluntarily returned to the customer, the possessory lien is generally lost.
This makes the physical control of the asset the most powerful leverage a toolmaker has during a payment dispute.
Notice Requirement
Formal communication is mandatory before a toolmaker can move toward selling the mould to recover funds. The statute requires the lienholder to send a registered letter to the customer and any known secured parties. This notice must state the amount due and provide a deadline for payment to avoid a sale.
If the customer does not respond or pay within the specified timeframe, the toolmaker can proceed with the enforcement steps.
Priority Status
Ranking of the toolmaker’s claim against other creditors is a primary benefit of this specific code section. In many cases, the statutory lien takes precedence over existing bank liens or security interests filed under the uniform commercial code. This ensures that the person who added value to the tool is paid before general creditors.
It provides a level of financial security for small and medium-sized shops in the manufacturing sector.
