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This entry was published on 2014-12-26
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SECTION 7-308
Enforcement of Carrier's Lien
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 7, PART 3
Section 7--308. Enforcement of Carrier's Lien.

(a) A carrier's lien on goods may be enforced by public or private
sale of the goods, in bulk or in packages, at any time or place and on
any terms that are commercially reasonable, after notifying all persons
known to claim an interest in the goods. The notification must 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 could
have been obtained by a sale at a different time or in a method
different from that selected by the carrier is not of itself sufficient
to establish that the sale was not made in a commercially reasonable
manner. The carrier sells goods in a commercially reasonable manner if
the carrier sells the goods in the usual manner in any recognized market
therefor, sells at the price current in that market at the time of the
sale, or otherwise sells in conformity with commercially reasonable
practices among dealers in the type of goods sold. A sale of more goods
than apparently necessary to be offered to ensure satisfaction of the
obligation is not commercially reasonable, except in cases covered by
the preceding sentence.

(b) Before any sale pursuant to this section, any person claiming a
right in the goods may pay the amount necessary to satisfy the lien and
the reasonable expenses incurred in complying with this section. In that
event, the goods may not be sold but must be retained by the carrier,
subject to the terms of the bill of lading and this article.

(c) A carrier may buy at any public sale pursuant to this section.

(d) A purchaser in good faith of goods sold to enforce a carrier's
lien takes the goods free of any rights of persons against which the
lien was valid, despite the carrier's noncompliance with this section.

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

(f) The rights provided by this section are in addition to all other
rights allowed by law to a creditor against a debtor.

(g) A carrier's lien may be enforced pursuant to either subsection (a)
or the procedure set forth in Section 7--210(b).

(h) A carrier is liable for damages caused by failure to comply with
the requirements for sale under this section and, in case of willful
violation, is liable for conversion.