Lien of Warehouseman

(1)A warehouseman has a lien against the bailor on the goods deposited or on the proceeds thereof in his possession for charges for COL120106 DIV. 7 WAREHOUSE RECEIPTS, BILLS OF LADING AND O THER DOCUMENTS OF TITLE storage, processing incidental to 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, 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 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 charges other than those specified in subdivision (1), such as for money advanced and interest, but if a receipt is issued for the goods such a security interest is not valid as against third persons without notice unless the maximum amount thereof is conspicuously specified (Section 1201) on the receipt. Such a security interest is governed by the division on secured transactions (Division 9).

(3)

(a)A warehouseman's lien for charges and expenses under subdivision

(1)or a security interest under subdivision

(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 7503.

(b)A warehouseman's lien on household goods for charges and expenses in relation to the goods under subdivision

(1)is also effective against all persons if the depositor was the legal possessor of the goods at the time of deposit. AHousehold 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.