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Texas Business & Commerce Code - Section 7.206. Termination Of Storage At Warehouse's Option

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 7.206. Termination Of Storage At Warehouse's Option

§ 7.206. TERMINATION OF STORAGE AT WAREHOUSE'S 
OPTION.  (a) A warehouse, by giving notice to the person on whose 
account the goods are held and any other person known to claim an 
interest in the goods, may require payment of any charges and 
removal of the goods from the warehouse at the termination of the 
period of storage fixed by the document of title or, if a period is 
not fixed, within a stated period not less than 30 days after the 
warehouse gives notice.  If the goods are not removed before the 
date specified in the notice, the warehouse may sell them pursuant 
to Section 7.210.
	(b)  If a warehouse in good faith believes that goods are 
about to deteriorate or decline in value to less than the amount of 
its lien within the time provided in Subsection (a) and Section 
7.210, the warehouse may specify in the notice given under 
Subsection (a) any reasonable shorter time for removal of the goods 
and, if the goods are not removed, may sell them at public sale held 
not less than one week after a single advertisement or posting.
	(c)  If, as a result of a quality or condition of the goods of 
which the warehouse did not have notice at the time of deposit, the 
goods are a hazard to other property, the warehouse facilities, or 
other persons, the warehouse may sell the goods at public or private 
sale without advertisement or posting on reasonable notification to 
all persons known to claim an interest in the goods.  If the 
warehouse, after a reasonable effort, is unable to sell the goods, 
it may dispose of them in any lawful manner and does not incur 
liability by reason of that disposition.
	(d)  A warehouse shall deliver the goods to any person 
entitled to them under this chapter upon due demand made at any time 
before sale or other disposition under this section.
	(e)  A warehouse may satisfy its lien from the proceeds of 
any sale or disposition under this section but shall hold the 
balance for delivery on the demand of any person to which the 
warehouse would have been bound to deliver the goods.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 2005, 79th Leg., ch. 122, § 1, eff. Sept. 1, 
2005.

Last modified: August 11, 2007