KRS 355.7-209: Lien of warehouse.

(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 i s 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.

(2) 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.

(3) 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 effectiv e 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 befo re

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 author ity 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 355.9 -

320 or other statute or rule of law; or

(b) Acquiesce in the procurement by the bailor or its nominee of any document.

(4) 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.

(5) A warehouse loses its lien on any goods that it voluntarily delivers or unjustifiably

refuses to deliver.