554.7210 Enforcement of warehouse’s lien. 1. Except as otherwise provided in subsection 2, a warehouse’s lien may be enforced by public or private sale of the goods, in bulk or in packages, at any time or place and on anyterms that are commercially reasonable, after notifying all persons known to claim an interestin the goods. The notification must include a statement of the amount due, the nature ofthe proposed sale, and the time and place of any public sale. The fact that a better pricecould have been obtained by a sale at a different time or in a method different from thatselected by the warehouse is not of itself sufficient to establish that the sale was not made in acommercially reasonable manner. The warehouse sells in a commercially reasonable mannerif the warehouse sells the goods in the usual manner in any recognized market therefor, sellsat the price current in that market at the time of the sale, or otherwise sells in conformity withcommercially reasonable practices among dealers in the type of goods sold. A sale of moregoods than apparently necessary to be offered to ensure satisfaction of the obligation is notcommercially reasonable, except in cases covered by the g dealers in the type of goods sold. A sale of moregoods than apparently necessary to be offered to ensure satisfaction of the obligation is notcommercially reasonable, except in cases covered by the preceding sentence. 2. A warehouse may enforce its lien on goods, other than goods stored by a merchant in the course of its business, only if the following requirements are satisfied: a. All persons known to claim an interest in the goods must be notified.b. The notification must include an itemized statement of the claim, a description of the goods subject to the lien, a demand for payment within a specified time not less than ten daysafter receipt of the notification, and a conspicuous statement that unless the claim is paidwithin that time the goods will be advertised for sale and sold by auction at a specified timeand place. c. The sale must conform to the terms of the notification.d. The sale must be held at the nearest suitable place to where the goods are held or stored.e. After the expiration of the time given in the notification, an advertisement of the sale must be published once a week for two weeks consecutively in a newspaper of generalcirculation where the sale is to be e expiration of the time given in the notification, an advertisement of the sale must be published once a week for two weeks consecutively in a newspaper of generalcirculation where the sale is to be held. The advertisement must include a description of thegoods, the name of the person on whose account the goods are being held, and the time andplace of the sale. The sale must take place at least fifteen days after the first publication. Ifthere is no newspaper of general circulation where the sale is to be held, the advertisementmust be posted at least ten days before the sale in not fewer than six conspicuous places inthe neighborhood of the proposed sale. 3. Before any sale pursuant to this section, any person claiming a right in the goods may pay the amount necessary to satisfy the lien and the reasonable expenses incurred incomplying with this section. In that event, the goods may not be sold but must be retainedby the warehouse subject to the terms of the receipt and this Article. 4. A warehouse may buy at any public sale held pursuant to this section.5. A purchaser in good faith of goods sold to enforce a warehouse’s lien takes the goods free of any rights of persons against 4. A warehouse may buy at any public sale held pursuant to this section.5. A purchaser in good faith of goods sold to enforce a warehouse’s lien takes the goods free of any rights of persons against which the lien was valid, despite the warehouse’snoncompliance with this section. 6. A warehouse may satisfy its lien from the proceeds of any sale pursuant to this section but shall hold the balance, if any, for delivery on demand to any person to which thewarehouse would have been bound to deliver the goods. 7. The rights provided by this section are in addition to all other rights allowed by law to a creditor against a debtor. 8. If a lien is on goods stored by a merchant in the course of its business, the lien may be enforced in accordance with subsection 1 or 2. 9. A warehouse is liable for damages caused by failure to comply with the requirements for sale under this section and, in case of willful violation, is liable for conversion. [R60, §1899 – 1904; C73, §2177 – 2181; C97, §3130 – 3133; S13, §3131, 3138-a33, -a35, -a36; C24, 27, 31, §9693, 9695, 9696, 9741, 10327 – 10330, 10333 – 10335; C35, §9693, 9695, 9696,9751-g24, 10327 – 10330, 10333 – 10335; C39, §9646, 9693, 9695, 30 – 3133; S13, §3131, 3138-a33, -a35, -a36; C24, 27, 31, §9693, 9695, 9696, 9741, 10327 – 10330, 10333 – 10335; C35, §9693, 9695, 9696,9751-g24, 10327 – 10330, 10333 – 10335; C39, §9646, 9693, 9695, 9751.24, 10327, 10330,10333 – 10335; C46, 50, 54, 58, 62, §542.33, 542.35, 542.36, 543.24 – 543.26, 575.3 – 575.6,575.9 – 575.11; C66, 71, 73, 75, 77, 79, 81, §554.7210] 2007 Acts, ch 30, §16, 45, 46Referred to in §554.7206, 554.7308 Sat Dec 23 01:57:51 2023 Iowa Code 2024, Section 554.7210 (25, 0)
Iowa Legal Code