N.Y. Uniform Commercial Code Law § 7-209: Lien of Warehouse

Section 7--209. Lien of Warehouse.

(a) 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.

(b) 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 (a), such as for money advanced and

interest. The security interest is governed by Article 9.

(c) A warehouse's lien for charges and expenses under subsection (a)

or a security interest under subsection (b) 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:

(1) deliver or entrust the goods or any document of title covering the

goods to the bailor or the bailor's nominee with:

(A) actual or apparent authority to ship, store, or sell;

(B) power to obtain delivery under Section 7--403; or

(C) power of disposition under Sections 2--403, 2A--304(2),

2A--305(2), 9--320, or 9--321(c) or other statute or rule of law; or

(2) acquiesce in the procurement by the bailor or its nominee of any

document.

(d) A warehouse's lien on household goods for charges and expenses in

relation to the goods under subsection (a) 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.

(e) A warehouse loses its lien on any goods that it voluntarily

delivers or unjustifiably refuses to deliver.