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This entry was published on 2014-12-26
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Termination of Storage at Warehouse's Option
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 2
Section 7--206. Termination of Storage at Warehouse's Option.

(a) A warehouse, by giving notice to the person on whose account the
goods are held and any other person known to claim an interest in the
goods, may require payment of any charges and removal of the goods from
the warehouse at the termination of the period of storage fixed by the
document of title or, if a period is not fixed, within a stated period
not less than 30 days after the warehouse gives notice. If the goods are
not removed before the date specified in the notice, the warehouse may
sell them pursuant to Section 7--210.

(b) If a warehouse in good faith believes that goods are about to
deteriorate or decline in value to less than the amount of its lien
within the time provided in subsection (a) and Section 7--210, the
warehouse may specify in the notice given under subsection (a) any
reasonable shorter time for removal of the goods and, if the goods are
not removed, may sell them at public sale held not less than one week
after a single advertisement or posting.

(c) If, as a result of a quality or condition of the goods of which
the warehouse did not have notice at the time of deposit, the goods are
a hazard to other property, the warehouse facilities, or other persons,
the warehouse may sell the goods at public or private sale without
advertisement or posting on reasonable notification to all persons known
to claim an interest in the goods. If the warehouse, after a reasonable
effort, is unable to sell the goods, it may dispose of them in any
lawful manner and does not incur liability by reason of that

(d) A warehouse shall deliver the goods to any person entitled to them
under this article upon due demand made at any time before sale or other
disposition under this section.

(e) A warehouse may satisfy its lien from the proceeds of any sale or
disposition under this section but shall hold the balance for delivery
on the demand of any person to which the warehouse would have been bound
to deliver the goods.