§ 41-07-15 — (7-209) Lien of warehouse

North Dakota § 41-07-15

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-07: Documents of Title

Text

1. 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.
2. 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 1,
such as for money advanced and interest. The security interest is governed by chapter
41-09.
3. A warehouse's lien for charges and expenses under subsection 1 or a security interest
under subsection 2 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:
a. Deliver or entrust the goods or any document of title covering the goods to the
bailor or the bailor's nominee with:
(1) Actual or apparent authority to ship, store, or sell;
(2) Power to obtain delivery under section 41-07-28; or
(3) Power of disposition under section 41-02-48, subsection 2 of section
41-02.1-34, subsection 2 of section 41-02.1-35, section 41-09-40,
subsection 3 of section 41-09-41, or other statute or rule of law; or
b. Acquiesce in the procurement by the bailor or its nominee of any document.
4. A warehouse's lien on household goods for charges and expenses in relation to the
goods under subsection 1 is also effective against all persons if the depositor was the
legal possessor of the goods at the time of deposit. In this subsection, "household
goods" means furniture, furnishings, or personal effects used by the depositor in a
dwelling.
5. A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably
refuses to deliver.