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This entry was published on 2014-12-26
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Lien of Warehouse
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 2
Section 7--209. Lien of Warehouse.

(a) A warehouse has a lien against the bailor on the goods covered by
a warehouse receipt or storage agreement or on the proceeds thereof in
its possession for charges for storage or 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 the goods or reasonably incurred in their sale
pursuant to law. If the person on whose account the goods are held is
liable for similar charges or expenses in relation to other goods
whenever deposited and it is stated in the warehouse receipt or storage
agreement that a lien is claimed for charges and expenses in relation to
other goods, the warehouse also has a lien against the goods covered by
the warehouse receipt or storage agreement or on the proceeds thereof in
its possession for those charges and expenses, whether or not the other
goods have been delivered by the warehouse. However, as against a person
to which a negotiable warehouse receipt is duly negotiated, a
warehouse's lien is limited to charges in an amount or at a rate
specified in the warehouse receipt or, if no charges are so specified,
to a reasonable charge for storage of the specific goods covered by the
receipt subsequent to the date of the receipt.

(b) A warehouse may also reserve a security interest against the
bailor for the maximum amount specified on the receipt for charges other
than those specified in subsection (a), such as for money advanced and
interest. The security interest is governed by Article 9.

(c) A warehouse's lien for charges and expenses under subsection (a)
or a security interest under subsection (b) is also effective against
any person that so entrusted the bailor with possession of the goods
that a pledge of them by the bailor to a good-faith purchaser for value
would have been valid. However, the lien or security interest is not
effective against a person that before issuance of a document of title
had a legal interest or a perfected security interest in the goods and
that did not:

(1) deliver or entrust the goods or any document of title covering the
goods to the bailor or the bailor's nominee with:

(A) actual or apparent authority to ship, store, or sell;

(B) power to obtain delivery under Section 7--403; or

(C) power of disposition under Sections 2--403, 2A--304(2),
2A--305(2), 9--320, or 9--321(c) or other statute or rule of law; or

(2) acquiesce in the procurement by the bailor or its nominee of any

(d) A warehouse's lien on household goods for charges and expenses in
relation to the goods under subsection (a) is also effective against all
persons if the depositor was the legal possessor of the goods at the
time of deposit. In this subsection, "household goods" means furniture,
furnishings, or personal effects used by the depositor in a dwelling.

(e) A warehouse loses its lien on any goods that it voluntarily
delivers or unjustifiably refuses to deliver.