§ 25-7-209. Lien of warehouse. - North Carolina Statutes

§ 25‑7‑209.  Lienof warehouse.

(a)        A warehouse has alien against the bailor on the goods covered by a warehouse receipt or storageagreement or on the proceeds thereof in its possession for charges for storageor transportation, including demurrage and terminal charges, insurance, labor,or other charges, present or future, in relation to the goods, and for expensesnecessary for preservation of the goods or reasonably incurred in their salepursuant to law. If the person on whose account the goods are held is liablefor similar charges or expenses in relation to other goods whenever depositedand it is stated in the warehouse receipt or storage agreement that a lien isclaimed for charges and expenses in relation to other goods, the warehouse alsohas a lien against the goods covered by the warehouse receipt or storageagreement or on the proceeds thereof in its possession for those charges andexpenses, whether or not the other goods have been delivered by the warehouse.However, as against a person to which a negotiable warehouse receipt is dulynegotiated, a warehouse's lien is limited to charges in an amount or at a ratespecified in the warehouse receipt or, if no charges are so specified, to areasonable charge for storage of the specific goods covered by the receiptsubsequent to the date of the receipt.

(b)        A warehouse mayalso reserve a security interest against the bailor for the maximum amountspecified on the receipt for charges other than those specified in subsection(a) of this section, such as for money advanced and interest. The securityinterest is governed by Article 9 of this Chapter.

(c)        A warehouse's lienfor charges and expenses under subsection (a) of this section or a securityinterest under subsection (b) of this section is also effective against anyperson that so entrusted the bailor with possession of the goods that a pledgeof them by the bailor to a good‑faith purchaser for value would have beenvalid. However, the lien or security interest is not effective against a personthat before issuance of a document of title had a legal interest or a perfectedsecurity interest in the goods and that did not:

(1)        Deliver or entrustthe goods or any document of title covering the goods to the bailor or thebailor's nominee with:

a.         Actual or apparentauthority to ship, store, or sell;

b.         Power to obtaindelivery under G.S. 25‑7‑403; or

c.         Power of dispositionunder G.S. 25‑2‑403, 25‑2A‑304(2), 25‑2A‑305(2),25‑9‑320, or 25‑9‑321(c) or other statute or rule oflaw; or

(2)        Acquiesce in the procurementby the bailor or its nominee of any document.

(d)        A warehouse's lienon household goods for charges and expenses in relation to the goods undersubsection (a) of this section is also effective against all persons if thedepositor was the legal possessor of the goods at the time of deposit. In thissubsection, "household goods" means furniture, furnishings, orpersonal effects used by the depositor in a dwelling.

(e)        A warehouse losesits lien on any goods that it voluntarily delivers or unjustifiably refuses todeliver. (1917,c. 37, ss. 27 to 31, 41; 1919, c. 65, s. 31; C.S., ss. 313, 4067 to 4071, 4081;1965, c. 700, s. 1; 1967, c. 562, s. 1; 2000‑169, s. 20; 2006‑112,s. 25.)