70A-7a-206 - Termination of storage at warehouse's option.
70A-7a-206. Termination of storage at warehouse's option.
(1) A warehouse, by giving notice to the person on whose account the goods are held andany other person known to claim an interest in the goods, may require payment of any chargesand removal of the goods from the warehouse at the termination of the period of storage fixed bythe document of title or, if a period is not fixed, within a stated period not less than 30 days afterthe warehouse gives notice. If the goods are not removed before the date specified in the notice,the warehouse may sell them pursuant to Section 70A-7a-210.
(2) If a warehouse in good faith believes that goods are about to deteriorate or decline invalue to less than the amount of its lien within the time provided in Subsection (1) and Section70A-7a-210, the warehouse may specify in the notice given under Subsection (1) any reasonableshorter time for removal of the goods and, if the goods are not removed, may sell them at publicsale held not less than one week after a single advertisement or posting.
(3) If, as a result of a quality or condition of the goods of which the warehouse did nothave notice at the time of deposit, the goods are a hazard to other property, the warehousefacilities, or other persons, the warehouse may sell the goods at public or private sale withoutadvertisement or posting on reasonable notification to all persons known to claim an interest inthe goods. If the warehouse, after a reasonable effort, is unable to sell the goods, it may disposeof them in any lawful manner and does not incur liability by reason of that disposition.
(4) A warehouse shall deliver the goods to any person entitled to them under this chapterupon due demand made at any time before sale or other disposition under this section.
(5) A warehouse may satisfy its lien from the proceeds of any sale or disposition underthis section but shall hold the balance for delivery on the demand of any person to which thewarehouse would have been bound to deliver the goods.
Enacted by Chapter 42, 2006 General Session