8.7-206 - Termination of storage at warehouseman's option.

§ 8.7-206. Termination of storage at warehouseman's option.

(1) A warehouseman may on notifying the person on whose account the goods areheld and any other person known to claim an interest in the goods requirepayment of any charges and removal of the goods from the warehouse at thetermination of the period of storage fixed by the document, or, if no periodis fixed, within a stated period not less than 30 days after thenotification. If the goods are not removed before the date specified in thenotification, the warehouseman may sell them in accordance with theprovisions of the section on enforcement of a warehouseman's lien (§ 8.7-210).

(2) If a warehouseman in good faith believes that the goods are about todeteriorate or decline in value to less than the amount of his lien withinthe time prescribed in subsection (1), the warehouseman may specify in thenotification any reasonable shorter time for removal of the goods and in casethe goods are not removed, may sell them at public sale held not less thanone week after a single advertisement or posting.

(3) If as a result of a quality or condition of the goods of which thewarehouseman had no notice at the time of deposit the goods are a hazard toother property or to the warehouse or to persons, the warehouseman may sellthe goods at public or private sale without advertisement or posting onreasonable notification to all persons known to claim an interest in thegoods. If the warehouseman after a reasonable effort is unable to sell thegoods he may dispose of them in any lawful manner and shall incur noliability by reason of such disposition.

(4) The warehouseman must deliver the goods to any person entitled to themunder this title upon due demand made at any time prior to sale or otherdisposition under this section.

(5) The warehouseman may satisfy his lien from the proceeds of any sale ordisposition under this section but must hold the balance for delivery on thedemand of any person to whom he would have been bound to deliver the goods.

(Code 1950, § 61-37; 1964, c. 219; 2004, c. 200.)