§ 4-7-209 — Lien of warehouse

Colorado § 4-7-209

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Documents of Title

Text

(a) A warehouse has a lien against the bailor on
the goods covered by a warehouse receipt or storage agreement or on the proceeds
thereof in its possession for charges for storage or transportation, including
demurrage and terminal charges, insurance, labor, or other charges, present or
future, in relation to the goods, and for expenses necessary for preservation of the
goods or reasonably incurred in their sale pursuant to law. If the person on whose
account the goods are held is liable for similar charges or expenses in relation to
other goods whenever deposited and it is stated in the warehouse receipt or
storage agreement that a lien is claimed for charges and expenses in relation to
other goods, the warehouse also has a lien against the goods covered by the
warehouse receipt or storage agreement or on the proceeds thereof in its
possession for those charges and expenses, whether or not the other goods have
been delivered by the warehouse. However, as against a person to which a
negotiable warehouse receipt is duly negotiated, a warehouse's lien is limited to
charges in an amount or at a rate specified in the warehouse receipt or, if no
charges are so specified, to a reasonable charge for storage of the specific goods
covered by the receipt subsequent to the date of the receipt.

(b) A warehouse may also reserve a security interest against the bailor for
the maximum amount specified on the receipt for charges other than those
specified in subsection (a) of this section, such as for money advanced and interest.
The security interest is governed by article 9 of this title.

(c) A warehouse's lien for charges and expenses under subsection (a) of this
section or a security interest under subsection (b) of this section is also effective
against any person that so entrusted the bailor with possession of the goods that a
pledge of them by the bailor to a good-faith purchaser for value would have been
valid. However, the lien or security interest is not effective against a person that
before issuance of a document of title had a legal interest or a perfected security
interest in the goods and that did not:

(1) Deliver or entrust the goods or any document of title covering the goods
to the bailor or the bailor's nominee with:

(A) Actual or apparent authority to ship, store, or sell;

(B) Power to obtain delivery under section 4-7-403; or

(C) Power of disposition under section 4-2-403, 4-2.5-304 (2), 4-2.5-305 (2),
4-9-320, or 4-9-321 (c) or other statute or rule of law; or

(2) Acquiesce in the procurement by the bailor or its nominee of any
document.

(d) A warehouse's lien on household goods for charges and expenses in
relation to the goods under subsection (a) of this section is also effective against all
persons if the depositor was the legal possessor of the goods at the time of deposit.
In this subsection (d), household goods means furniture, furnishings, or personal
effects used by the depositor in a dwelling.

(e) A warehouse loses its lien on any goods that it voluntarily delivers or
unjustifiably refuses to deliver.

Legislative History

Source: L. 2006: Entire article R&RE, p. 476, � 2, effective September 1. L. 2007: (b) and (c)(1) amended, p. 367, � 9, effective August 3.