Notwithstanding any custom, practice, or usage of the trade or any provision of law to the contrary:
(1) Whenever an artist delivers or causes to be delivered a work of fine art of his or her own creation to an art dealer for the purpose of exhibition or sale on a commission, fee, or other basis of compensation, the delivery to, and acceptance thereof by, the art dealer is deemed to place the work on consignment; and:
(A) The art dealer shall thereafter, with respect to the work, be deemed to be the agent of such artist;
(B) The work is trust property in the hands of the consignee for the benefit of the consignor; and
(C) Any proceeds from the sale of the work are trust funds in the hands of the consignee for the benefit of the consignor;
(2) Notwithstanding the subsequent purchase of a work of fine art by the consignee directly or indirectly for his or her own account, the work initially received on consignment shall be deemed to remain trust property until the price is paid in full to the consignor. If the work is thereafter resold to a bona fide third party before the consignor has been paid in full, the proceeds of the resale are trust funds in the hands of the consignee for the benefit of the consignor to the extent necessary to pay any balance still due to the consignor, and the trusteeship shall continue until the fiduciary obligation of the consignee with respect to the transaction is discharged in full; and
(3) Notwithstanding any law to the contrary, no such trust property or trust funds shall be subject to or subordinate to any claims, liens, or security interests of the consignee's creditors;
(4) (A) An art dealer is liable for negligent acts causing the loss of or damage to a work of fine art while it is in his possession.
(B) The value of the work of fine art is, for the purposes of this subdivision (4), the value established in a written agreement between the artist and the art dealer prior to the loss or damage of the work or, if no written agreement regarding the value of the work exists, the fair market value of the work less the art dealer's commission or fee.
Section: Previous 4-73-202 4-73-203 4-73-204 4-73-205 4-73-206 4-73-207Last modified: November 15, 2016