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§12A-7-210.
§12A-7-210.
(1) Except as provided in subsection (2), a warehouseman's lien may be
enforced by public or private sale of the goods in bloc or in parcels,
at any time or place and on any terms which are commercially
reasonable, after notifying all persons known to claim an interest in
the goods. Such 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 different method from that selected
by the warehouseman is not of itself sufficient to establish that the
sale was not made in a commercially reasonable manner. If the
warehouseman either sells the goods in the usual manner in any
recognized market therefor, or if he sells at the price current in
such market at the time of his sale, or if he has otherwise sold in
conformity with commercially reasonable practices among dealers in the
type of goods sold, he has sold in a commercially reasonable manner. A
sale of more goods than apparently necessary to be offered to insure
satisfaction of the obligation is not commercially reasonable except
in cases covered by the preceding sentence.
(2) A warehouseman's lien on goods other than goods stored by a
merchant in the course of his business may be enforced only as
follows:
(a) All persons known to claim an interest in the goods must be
notified.
(b) The notification must be delivered in person or sent by registered
letter to the last-known address of any person to be notified.
(c) The notification must include an itemized statement of the claim,
a description of the goods subject to the lien, a demand for payment
within a specified time not less than ten (10) days after receipt of
the notification, and a conspicuous statement that unless the claim is
paid within that time the goods will be advertised for sale and sold
by auction at a specified time and place.
(d) The sale must conform to the terms of the notification.
(e) The sale must be held at the nearest suitable place to that where
the goods are held or stored.
(f) After the expiration of the time given in the notification, an
advertisement of the sale must be published once a week for two (2)
weeks consecutively in a newspaper of general circulation where the
sale is to be held. The advertisement must include a description of
the goods, the name of the person on whose account they are being
held, and the time and place of the sale. The sale must take place at
least fifteen (15) days after the first publication. If there is no
newspaper of general circulation where the sale is to be held, the
advertisement must be posted at least ten (10) days before the sale in
not less than six conspicuous places in the neighborhood of the
proposed sale.
(3) 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 under this section. In that event
the goods must not be sold, but must be retained by the warehouseman
subject to the terms of the receipt and this Article.
(4) The warehouseman may buy at any public sale pursuant to this
section.
(5) A purchaser in good faith of goods sold to enforce a
warehouseman's lien takes the goods free of any rights of persons
against whom the lien was valid, despite noncompliance by the
warehouseman with the requirements of this section.
(6) The warehouseman may satisfy his lien from the proceeds of any
sale pursuant to this section but must hold the balance, if any, for
delivery on demand to any person to whom he would have been bound to
deliver the goods.
(7) The rights provided by this section shall be in addition to all
other rights allowed by law to a creditor against his debtor.
(8) Where a lien is on goods stored by a merchant in the course of his
business the lien may be enforced in accordance with either subsection
(1) or (2).
(9) The warehouseman 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.
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