§ 6A-7-210 - Enforcement of warehouse's liens.
SECTION 6A-7-210
§ 6A-7-210 Enforcement of warehouse'sliens. – (a) Except as otherwise provided in subsection (b), a warehouse's lien may beenforced by public or private sale of the goods, in bulk or in packages, at anytime or place and on any terms that are commercially reasonable, afternotifying all persons known to claim an interest in the goods. The notificationmust 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 couldhave been obtained by a sale at a different time or in a method different fromthat selected by the warehouse is not of itself sufficient to establish thatthe sale was not made in a commercially reasonable manner. The warehouse sellsin a commercially reasonable manner if the warehouse sells the goods in theusual manner in any recognized market therefore, sells at the price current inthat market at the time of the sale, or otherwise sells in conformity withcommercially reasonable practices among dealers in the type of goods sold. Asale of more goods than apparently necessary to be offered to ensuresatisfaction of the obligation is not commercially reasonable, except in casescovered by the preceding sentence.
(b) A warehouse may enforce its lien on goods, other thangoods stored by a merchant in the course of its business, only if the followingrequirements are satisfied:
(1) All persons known to claim an interest in the goods mustbe notified.
(2) The notification must include an itemized statement ofthe claim, a description of the goods subject to the lien, a demand for paymentwithin a specified time not less than ten (10) days after receipt of thenotification, and a conspicuous statement that unless the claim is paid withinthat time the goods will be advertised for sale and sold by auction at aspecified 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 towhere the goods are held or stored.
(5) After the expiration of the time given in thenotification, an advertisement of the sale must be published once a week fortwo weeks consecutively in a newspaper of general circulation where the sale isto be held. The advertisement must include a description of the goods, the nameof the person on whose account the goods are being held, and the time and placeof the sale. The sale must take place at least fifteen (15) days after thefirst publication. If there is no newspaper of general circulation where thesale is to be held, the advertisement must be posted at least ten (10) daysbefore the sale in not fewer than six (6) conspicuous places in theneighborhood of the proposed sale.
(c) Before any sale pursuant to this section, any personclaiming a right in the goods may pay the amount necessary to satisfy the lienand the reasonable expenses incurred in complying with this section. In thatevent, the goods may not be sold but must be retained by the warehouse subjectto the terms of the receipt and this chapter.
(d) A warehouse may buy at any public sale held pursuant tothis section.
(e) A purchaser in good faith of goods sold to enforce awarehouse's lien takes the goods free of any rights of persons against whichthe lien was valid, despite the warehouse's noncompliance with this section.
(f) A warehouse may satisfy its lien from the proceeds of anysale pursuant to this section but shall hold the balance, if any, for deliveryon demand to any person to which the warehouse would have been bound to deliverthe goods.
(g) The rights provided by this section are in addition toall other rights allowed by law to a creditor against a debtor.
(h) If a lien is on goods stored by a merchant in the courseof its business, the lien may be enforced in accordance with subsection (a) or(b).
(i) A warehouse is liable for damages caused by failure tocomply with the requirements for sale under this section and, in case ofwillful violation, is liable for conversion.