2005 Illinois 810 ILCS 5/ Uniform Commercial Code. Part 2 - Warehouse Receipts: Special Provisions
(810 ILCS 5/Art. 7 Pt. 2 heading)
PART 2.
WAREHOUSE RECEIPTS: SPECIAL PROVISIONS
(810 ILCS 5/7‑201) (from Ch. 26, par. 7‑201)
Sec. 7‑201.
Who
may issue a warehouse receipt; storage under government bond.
(1) A warehouse receipt may be issued by any warehouseman.
(2) Where goods including distilled spirits and agricultural commodities
are stored under a statute requiring a bond against withdrawal or a license
for the issuance of receipts in the nature of warehouse receipts, a receipt
issued for the goods has like effect as a warehouse receipt even though
issued by a person who is the owner of the goods and is not a warehouseman.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑202) (from Ch. 26, par. 7‑202)
Sec. 7‑202.
Form
of warehouse receipt; essential terms; optional terms.
(1) A warehouse receipt need not be in any particular form.
(2) Unless a warehouse receipt embodies within its written or printed
terms each of the following, the warehouseman is liable for damages caused
by the omission to a person injured thereby:
(a) the location of the warehouse where the goods are stored;
(b) the date of issue of the receipt;
(c) the consecutive number of the receipt;
(d) a statement whether the goods received will be delivered to the
bearer, to a specified person, or to a specified person or his order;
(e) the rate of storage and handling charges, except that where goods
are stored under a field warehousing arrangement a statement of that fact
is sufficient on a non‑negotiable receipt;
(f) a description of the goods or of the packages containing them;
(g) the signature of the warehouseman, which may be made by his
authorized agent;
(h) if the receipt is issued for goods of which the warehouseman is
owner, either solely or jointly or in common with others, the fact of such
ownership; and
(i) a statement of the amount of advances made and of liabilities
incurred for which the warehouseman claims a lien or security interest
(Section 7‑‑209). If the precise amount of such advances made or of such
liabilities incurred is, at the time of the issue of the receipt, unknown
to the warehouseman or to his agent who issues it, a statement of the fact
that advances have been made or liabilities incurred and the purpose
thereof is sufficient.
(3) A warehouseman may insert in his receipt any other terms which are
not contrary to the provisions of this Act and do not impair his obligation
of delivery (Section 7‑‑403) or his duty of care (Section 7‑‑204). Any
contrary provisions shall be ineffective.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑203) (from Ch. 26, par. 7‑203)
Sec. 7‑203.
Liability for non‑receipt or misdescription.
A party to or purchaser for value in good faith of a document of title
other than a bill of lading relying in either case upon the description
therein of the goods may recover from the issuer damages caused by the
non‑receipt or misdescription of the goods, except to the extent that the
document conspicuously indicates that the issuer does not know whether any
part or all of the goods in fact were received or conform to the
description as where the description is in terms of marks or labels or
kind, quantity or condition, or the receipt or description is qualified by
"contents, condition and quality unknown", "said to contain" or the like,
if such indication be true, or the party or purchaser otherwise has notice.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑204) (from Ch. 26, par. 7‑204)
Sec. 7‑204.
Duty
of care; contractual limitation of warehouseman's liability.
(1) A warehouseman is liable for damages for loss of or injury to the
goods caused by his failure to exercise such care in regard to them as a
reasonably careful man would exercise under like circumstances but unless
otherwise agreed he is not liable for damages which could not have been
avoided by the exercise of such care.
(2) Damages may be limited by a term in the warehouse receipt or storage
agreement limiting the amount of liability in case of loss or damage, and
setting forth a specific liability per article or item, or value per unit
of weight, beyond which the warehouseman shall not be liable; provided,
however, that such liability may on written request of the bailor at the
time of signing such storage agreement or within a reasonable time after
receipt of the warehouse receipt be increased on part or all of the goods
thereunder, in which event increased rates may be charged based on such
increased valuation, but that no such increase shall be permitted contrary
to a lawful limitation of liability contained in the warehouseman's tariff,
if any. No such limitation is effective with respect to the warehouseman's
liability for conversion to his own use.
(3) Reasonable provisions as to the time and manner of presenting claims
and instituting actions based on the bailment may be included in the
warehouse receipt or tariff.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑205) (from Ch. 26, par. 7‑205)
Sec. 7‑205.
Title under warehouse receipt defeated in certain cases.
A buyer in the ordinary course of business of fungible goods sold and
delivered by a warehouseman who is also in the business of buying and
selling such goods takes free of any claim under a warehouse receipt even
though it has been duly negotiated.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑206) (from Ch. 26, par. 7‑206)
Sec. 7‑206.
Termination of storage at warehouseman's option.
(1) A warehouseman may on notifying the person on whose account the
goods are held and any other person known to claim an interest in the goods
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, or, if
no period is fixed, within a stated period not less than 30 days after the
notification. If the goods are not removed before the date specified in the
notification, the warehouseman may sell them in accordance with the
provisions of the Section on enforcement of a warehouseman's lien (Section
7‑‑210).
(2) If a warehouseman in good faith believes that the goods are about to
deteriorate or decline in value to less than the amount of his lien within
the time prescribed in subsection (1) for notification, advertisement and
sale, the warehouseman may specify in the notification any reasonable
shorter time for removal of the goods and in case the goods are not
removed, may sell them at public sale held not less than one week after a
single advertisement or posting.
(3) If as a result of a quality or condition of the goods of which the
warehouseman had no notice at the time of deposit the goods are a hazard to
other property or to the warehouse or to persons, the warehouseman may sell
the goods at public or private sale without advertisement on reasonable
notification to all persons known to claim an interest in the goods. If the
warehouseman after a reasonable effort is unable to sell the goods he may
dispose of them in any lawful manner and shall incur no liability by reason
of such disposition.
(4) The warehouseman must deliver the goods to any person entitled to
them under this Article upon due demand made at any time prior to sale or
other disposition under this Section.
(5) The warehouseman may satisfy his lien from the proceeds of any sale
or disposition under this Section but must hold the balance for delivery on
the demand of any person to whom he would have been bound to deliver the
goods.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑207) (from Ch. 26, par. 7‑207)
Sec. 7‑207.
Goods must be kept separate; fungible goods.
(1) Unless the warehouse receipt otherwise provides, a warehouseman must
keep separate the goods covered by each receipt so as to permit at all
times identification and delivery of those goods except that different lots
of fungible goods may be commingled.
(2) Fungible goods so commingled are owned in common by the persons
entitled thereto and the warehouseman is severally liable to each owner for
that owner's share. Where because of overissue a mass of fungible goods is
insufficient to meet all the receipts which the warehouseman has issued
against it, the persons entitled include all holders to whom overissued
receipts have been duly negotiated.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑208) (from Ch. 26, par. 7‑208)
Sec. 7‑208.
Altered warehouse receipts.
Where a blank in a negotiable warehouse receipt has been filled in
without authority, a purchaser for value and without notice of the want of
authority may treat the insertion as authorized. Any other unauthorized
alteration leaves any receipt enforceable against the issuer according to
its original tenor.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/7‑209) (from Ch. 26, par. 7‑209)
Sec. 7‑209.
Lien
of warehouseman.
(1) A warehouseman has a lien against the bailor on the goods covered by
a warehouse receipt or on the proceeds thereof in his possession for
charges for storage or transportation (including demurrage and terminal
charges), insurance, labor, or 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 like charges or expenses in
relation to other goods whenever deposited and it is stated in the receipt
that a lien is claimed for charges and expenses in relation to other goods,
the warehouseman also has a lien against him for such charges and expenses
whether or not the other goods have been delivered by the warehouseman. But
against a person to whom a negotiable warehouse receipt is duly negotiated
a warehouseman's lien is limited to charges in an amount or at a rate
specified on the receipt or if no charges are so specified then to a
reasonable charge for storage of the goods covered by the receipt
subsequent to the date of the receipt.
(2) The warehouseman may also reserve a security interest against the
bailor for a maximum amount specified on the receipt for charges other than
those specified in subsection (1), such as for money advanced and interest.
Such a security interest is governed by the Article on Secured Transactions
(Article 9).
(3) (a) A warehouseman's lien for charges and expenses under subsection
(1) or a security interest under subsection (2) is also effective against
any person who so entrusted the bailor with possession of the goods that a
pledge of them by him to a good faith purchaser for value would have been
valid but is not effective against a person as to whom the document confers
no right in the goods covered by it under Section 7‑‑503.
(b) A warehouseman's lien on household goods for charges and expenses in
relation to the goods under subsection (1) is also effective against all
persons if the depositor was the legal possessor of the goods at the time
of deposit. "Household goods" means furniture, furnishings and personal
effects used by the depositor in a dwelling.
(4) A warehouseman loses his lien on any goods which he voluntarily
delivers or which he unjustifiably refuses to deliver.
(Source: P. A. 77‑2810.)
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(810 ILCS 5/7‑210) (from Ch. 26, par. 7‑210)
Sec. 7‑210.
Enforcement of warehouseman's lien.
(1) Except as provided in subsection (2), a warehouseman's lien may be
enforced by public or private sale of the goods in block 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 or certified 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 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 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 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 10 days before the
sale in not less than 6 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.
(Source: Laws 1965, p. 803.)
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