| (1) |
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. |
Terms Used In Utah Code 70A-7a-209
- Goods: means all things that are treated as movable for the purposes of a contract for storage or transportation. See Utah Code 70A-7a-102
- Lien: A claim against real or personal property in satisfaction of a debt.
- Person: means :Utah Code 68-3-12.5
- Statute: A law passed by a legislature.
- Uniform Commercial Code: A set of statutes enacted by the various states to provide consistency among the states' commercial laws. It includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading. Source: OCC
- Warehouse: means a person engaged in the business of storing goods for hire. See Utah Code 70A-7a-102
| (2) |
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 (1), such as for money advanced and interest. The security interest is governed by Chapter 9a, Uniform Commercial Code – Secured Transactions. |
| (3) |
A warehouse’s lien for charges and expenses under Subsection (1) or a security interest under Subsection (2) 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 of title covering the goods to the bailor or the bailor’s nominee with:
| (i) |
actual or apparent authority to ship, store, or sell; |
| (ii) |
power to obtain delivery under Section 70A-7a-403; or |
|
| (b) |
acquiesce in the procurement by the bailor or its nominee of any document. |
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| (4) |
A warehouse’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. In this Subsection (4), “household goods” means furniture, furnishings, or personal effects used by the depositor in a dwelling. |
| (5) |
A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably refuses to deliver. |
Enacted by Chapter 42, 2006 General Session
