§ 7-209 — Lien of Warehouse

Section 7--209. Lien of Warehouse.\n (a) A warehouse has a lien against the bailor on the goods covered by\na warehouse receipt or storage agreement or on the proceeds thereof in\nits possession for charges for storage or transportation, including\ndemurrage and terminal charges, insurance, labor, or other charges,\npresent or future, in relation to the goods, and for expenses necessary\nfor preservation of the goods or reasonably incurred in their sale\npursuant to law. If the person on whose account the goods are held is\nliable for similar charges or expenses in relation to other goods\nwhenever deposited and it is stated in the warehouse receipt or storage\nagreement that a lien is claimed for charges and expenses in relation to\nother goods, the warehouse also has a lien against the goods covered by\nthe warehouse receipt or storage agreement or on the proceeds thereof in\nits possession for those charges and expenses, whether or not the other\ngoods have been delivered by the warehouse. However, as against a person\nto which a negotiable warehouse receipt is duly negotiated, a\nwarehouse's lien is limited to charges in an amount or at a rate\nspecified in the warehouse receipt or, if no charges are so specified,\nto a reasonable charge for storage of the specific goods covered by the\nreceipt subsequent to the date of the receipt.\n (b) A warehouse may also reserve a security interest against the\nbailor for the maximum amount specified on the receipt for charges other\nthan those specified in subsection (a), such as for money advanced and\ninterest. The security interest is governed by Article 9.\n (c) A warehouse's lien for charges and expenses under subsection (a)\nor a security interest under subsection (b) is also effective against\nany person that so entrusted the bailor with possession of the goods\nthat a pledge of them by the bailor to a good-faith purchaser for value\nwould have been valid. However, the lien or security interest is not\neffective against a person that before issuance of a document of title\nhad a legal interest or a perfected security interest in the goods and\nthat did not:\n (1) deliver or entrust the goods or any document of title covering the\ngoods to the bailor or the bailor's nominee with:\n (A) actual or apparent authority to ship, store, or sell;\n (B) power to obtain delivery under Section 7--403; or\n (C) power of disposition under Sections 2--403, 2A--304(2),\n2A--305(2), 9--320, or 9--321(c) or other statute or rule of law; or\n (2) acquiesce in the procurement by the bailor or its nominee of any\ndocument.\n (d) A warehouse's lien on household goods for charges and expenses in\nrelation to the goods under subsection (a) is also effective against all\npersons if the depositor was the legal possessor of the goods at the\ntime of deposit. In this subsection, "household goods" means furniture,\nfurnishings, or personal effects used by the depositor in a dwelling.\n (e) A warehouse loses its lien on any goods that it voluntarily\ndelivers or unjustifiably refuses to deliver.\n