70A-7a-209 - Lien of warehouse.
70A-7a-209. Lien of warehouse.
(1) A warehouse has a lien against the bailor on the goods covered by a warehousereceipt or storage agreement or on the proceeds thereof in its possession for charges for storageor 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 thegoods or reasonably incurred in their sale pursuant to law. If the person on whose account thegoods are held is liable for similar charges or expenses in relation to other goods wheneverdeposited and it is stated in the warehouse receipt or storage agreement that a lien is claimed forcharges and expenses in relation to other goods, the warehouse also has a lien against the goodscovered by the warehouse receipt or storage agreement or on the proceeds thereof in itspossession for those charges and expenses, whether or not the other goods have been deliveredby the warehouse. However, as against a person to which a negotiable warehouse receipt is dulynegotiated, a warehouse's lien is limited to charges in an amount or at a rate specified in thewarehouse receipt or, if no charges are so specified, to a reasonable charge for storage of thespecific 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 maximumamount specified on the receipt for charges other than those specified in Subsection (1), such asfor money advanced and interest. The security interest is governed by Chapter 9a, UniformCommercial Code - Secured Transactions.
(3) A warehouse's lien for charges and expenses under Subsection (1) or a securityinterest under Subsection (2) is also effective against any person that so entrusted the bailor withpossession of the goods that a pledge of them by the bailor to a good-faith purchaser for valuewould have been valid. However, the lien or security interest is not effective against a personthat before issuance of a document of title had a legal interest or a perfected security interest inthe goods and that did not:
(a) deliver or entrust the goods or any document of title covering the goods to the bailoror the bailor's nominee with:
(i) actual or apparent authority to ship, store, or sell;
(ii) power to obtain delivery under Section 70A-7a-403; or
(iii) power of disposition under Section 70A-2-403, Subsection 70A-2a-304(2),Subsection 70A-2a-305(2), Section 70A-9a-320, or Subsection 70A-9a-321(3) or other statute orrule 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 thegoods under Subsection (1) is also effective against all persons if the depositor was the legalpossessor of the goods at the time of deposit. In this Subsection (4), "household goods" meansfurniture, 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 unjustifiablyrefuses to deliver.
Enacted by Chapter 42, 2006 General Session