2018 Kentucky Revised Statutes CHAPTER 355 - UNIFORM COMMERCIAL CODE Article 7 - Warehouse Receipts, Bills of Lading, and Other Documents of Title 355.7-209 Lien of warehouse.
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355.7-209 Lien of warehouse.
(1)
(2)
(3)
(4)
(5)
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.
The warehouse may also reserve a security interest under Article 9 of this chapter
against the bailor for the maximum amount specified on the receipt for charges
other than those specified in subsection (1) of this section, such as for money
advanced and interest. A security interest is governed by Article 9 of this chapter.
A warehouse's lien for charges and expenses under subsection (1) of this section or
a security interest under subsection (2) of this section 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:
(a) Deliver or entrust the goods or any document covering the goods to the bailor
or the bailor's nominee with actual or apparent authority to ship, store, or sell;
or with power to obtain delivery under KRS 355.7-403; or with power of
disposition under KRS 355.2A-304(2), 355.2A-305(2), 355.7-403, or 355.9320 or other statute or rule of law; or
(b) Acquiesce in the procurement by the bailor or its nominee of any document.
A warehouse's lien on household goods for charges and expenses in relation to the
goods under subsection (1) of this section 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.
A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably
refuses to deliver.
Effective: July 12, 2012
History: Repealed and reenacted 2012 Ky. Acts ch. 132, sec. 15, effective July 12,
2012. -- Amended 1986 Ky. Acts ch. 118, sec. 9, effective July 1, 1987 -- Created
1958 Ky. Acts ch. 77, sec. 7-209, effective July 1, 1960.
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