N.Y. UCC Law § 7-210 — New York Code / Act UCC / Article 7 / Part 2 / Section 7-210
Enforcement of Warehouse's Lien
Status: in_force

Section 7--210. Enforcement of Warehouse's Lien.\n  (a) Except as otherwise provided in subsection (b), a warehouse's lien\nmay be enforced by public or private sale of the goods, in bulk or in\npackages, at any time or place and on any terms that are commercially\nreasonable, after notifying all persons known to claim an interest in\nthe goods. The notification must include a statement of the amount due,\nthe nature of the proposed sale, and the time and place of any public\nsale. The fact that a better price could have been obtained by a sale at\na different time or in a method different from that selected by the\nwarehouse is not of itself sufficient to establish that the sale was not\nmade in a commercially reasonable manner. The warehouse sells in a\ncommercially reasonable manner if the warehouse sells the goods in the\nusual manner in any recognized market therefore, sells at the price\ncurrent in that market at the time of the sale, or otherwise sells in\nconformity with commercially reasonable practices among dealers in the\ntype of goods sold. A sale of more goods than apparently necessary to be\noffered to ensure satisfaction of the obligation is not commercially\nreasonable, except in cases covered by the preceding sentence.\n  (b) A warehouse may enforce its lien on goods, other than goods stored\nby a merchant in the course of its business, only if the following\nrequirements are satisfied:\n  (1) All persons known to claim an interest in the goods must be\nnotified.\n  (2) The notification must include an itemized statement of the claim,\na description of the goods subject to the lien, a demand for payment\nwithin a specified time not less than ten days after receipt of the\nnotification, and a conspicuous statement that unless the claim is paid\nwithin that time the goods will be advertised for sale and sold by\nauction at a specified time and place.\n  (3) The sale must conform to the terms of the notification.\n  (4) The sale must be held at the nearest suitable place to where the\ngoods are held or stored.\n  (5) After the expiration of the time given in the notification, an\nadvertisement of the sale must be published once a week for two weeks\nconsecutively in a newspaper of general circulation where the sale is to\nbe held. The advertisement must include a description of the goods, the\nname of the person on whose account the goods are being held, and the\ntime and place of the sale. The sale must take place at least fifteen\ndays after the first publication. If there is no newspaper of general\ncirculation where the sale is to be held, the advertisement must be\nposted at least ten days before the sale in not fewer than six\nconspicuous places in the neighborhood of the proposed sale.\n  (c) Before any sale pursuant to this section, any person claiming a\nright in the goods may pay the amount necessary to satisfy the lien and\nthe reasonable expenses incurred in complying with this section. In that\nevent, the goods may not be sold but must be retained by the warehouse\nsubject to the terms of the receipt and this article.\n  (d) A warehouse may buy at any public sale held pursuant to this\nsection.\n  (e) A purchaser in good faith of goods sold to enforce a warehouse's\nlien takes the goods free of any rights of persons against which the\nlien was valid, despite the warehouse's noncompliance with this section.\n  (f) A warehouse may satisfy its lien from the proceeds of any sale\npursuant to this section but shall hold the balance, if any, for\ndelivery on demand to any person to which the warehouse would have been\nbound to deliver the goods.\n  (g) The rights provided by this section are in addition to all other\nrights allowed by law to a creditor against a debtor.\n  (h) If a lien is on goods stored by a merchant in the course of its\nbusiness, the lien may be enforced in accordance with subsection (a) or\n(b).\n  (i) A warehouse is liable for damages caused by failure to comply with\nthe requirements for sale under this section and, in case of willful\nviolation, is liable for conversion.\n