1.Except as otherwise provided in subsection 2, 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 recogniz
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1. Except as otherwise provided in subsection 2, 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 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.
2. A warehouse may enforce its lien on goods, other than goods stored by a merchant in
the course of its business, only if the following requirements are satisfied:
a. All persons known to claim an interest in the goods must be notified.
b. 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 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.
c. The sale must conform to the terms of the notification.
d. The sale must be held at the nearest suitable place to where the goods are held
or stored.
e. After the expiration of the time given in the notification, an advertisement of the
sale must be published once a week for two 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 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 days before the sale in not fewer than six conspicuous places
in the neighborhood of the proposed sale.
3. 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.
4. A warehouse may buy at any public sale held pursuant to this section.
5. 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.
6. 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.
7. The rights provided by this section are in addition to all other rights allowed by law to a
creditor against a debtor.
8. 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 1 or 2.
9. 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.