(a)Except as otherwise provided in
subsection (b), a warehouse's lien may be enforced by public or private
sale of the goods, in bulk or in packages, at any time or place and on
any terms that are commercially reasonable, after notifying all persons
known to claim an interest in the goods. The notification must include
a statement of the amount due, the nature of the proposed sale, and the
time and place of any public sale. The fact that a better price could
have been obtained by a sale at a different time or in a method different
from that selected by the warehouse is not of itself sufficient to
establish that the sale was not made in a commercially reasonable
manner. The warehouse sells in a commercially reasonable manner if
the warehouse sells the goods in the usual manner in any recog
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(a) Except as otherwise provided in
subsection (b), a warehouse's lien may be enforced by public or private
sale of the goods, in bulk or in packages, at any time or place and on
any terms that are commercially reasonable, after notifying all persons
known to claim an interest in the goods. The notification must include
a statement of the amount due, the nature of the proposed sale, and the
time and place of any public sale. The fact that a better price could
have been obtained by a sale at a different time or in a method different
from that selected by the warehouse is not of itself sufficient to
establish that the sale was not made in a commercially reasonable
manner. The warehouse sells in a commercially reasonable manner if
the warehouse sells the goods in the usual manner in any recognized
market therefor, sells at the price current in that market at the time of
the warehouse's sale, or otherwise sells in conformity with
commercially reasonable practices among dealers in the type of goods
sold. A sale of more goods than apparently necessary to be offered to
ensure satisfaction of the obligation is not commercially reasonable
except in cases covered by the preceding sentence.
(b) A warehouse may enforce its lien on goods other than goods
stored by a merchant in the course of its business if the following
requirements are satisfied:
(1) All persons known to claim an interest in the goods must be
notified.
(2) The notification must include an itemized statement of the
claim, a description of the goods subject to the lien, a demand for
payment within a specified time not less than ten (10) days after
receipt of the notification, and a conspicuous statement that
unless the claim is paid within that time the goods will be
advertised for sale and sold by auction at a specified time and
place.
(3) The sale must conform to the terms of the notification.
(4) The sale must be held at the nearest suitable place to where
the goods are held or stored.
(5) After the expiration of the time given in the notification, an
advertisement of the sale must be published once a week for two
(2) weeks consecutively in a newspaper of general circulation
where the sale is to be held. The advertisement must include a
description of the goods, the name of the person on whose
account the goods are being held, and the time and place of the
sale. The sale must take place at least fifteen (15) days after the
first publication. If there is no newspaper of general circulation
where the sale is to be held, the advertisement must be posted at
least ten (10) days before the sale in not fewer than six (6)
conspicuous places in the neighborhood of the proposed sale.
(c) Before any sale pursuant to this section, any person claiming a
right in the goods may pay the amount necessary to satisfy the lien and
the reasonable expenses incurred in complying with this section. In that
event, the goods may not be sold but must be retained by the warehouse
subject to the terms of the receipt and this chapter.
(d) A warehouse may buy at any public sale held pursuant to this
section.
(e) A purchaser in good faith of goods sold to enforce a warehouse's
lien takes the goods free of any rights of persons against which the lien
was valid, despite the warehouse's noncompliance with this section.
(f) A warehouse may satisfy its lien from the proceeds of any sale
pursuant to this section but shall hold the balance, if any, for delivery
on demand to any person to which the warehouse would have been
bound to deliver the goods.
(g) The rights provided by this section are in addition to all other
rights allowed by law to a creditor against a debtor.
(h) If a lien is on goods stored by a merchant in the course of its
business, the lien may be enforced in accordance with subsection (a)
or (b).
(i) A warehouse is liable for damages caused by failure to comply
with the requirements for sale under this section and, in case of willful
violation, is liable for conversion.
Formerly: Acts 1963, c.317, s.7-210. As amended by
P.L.152-1986, SEC.251; P.L.143-2007, SEC.39.