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HomeCommercial CodeDiv. 7Ch. 2§ 7209 Warehouse Lien On Goods

§ 7209 Warehouse Lien On Goods

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 7209 Warehouse Lien On Goods

Key Takeaways

  • •A warehouse can hold your stuff if you don't pay your storage bill. They can keep your things until you pay what you owe.
  • •The warehouse can also charge you for things like insurance, moving your stuff around, or keeping it safe.
  • •If you store household items (like furniture), the warehouse can keep them even if someone else claims they own them, as long as you had the right to store them.
  • •If the warehouse gives your stuff back or refuses to give it back without a good reason, they lose the right to hold it.

Example

You store your old couch and TV in a warehouse because you're moving to a smaller place. You agree to pay $50 every month to keep them there.

If you stop paying the $50, the warehouse can keep your couch and TV until you pay what you owe. They can also charge extra if they had to move your stuff or insure it. If you don’t pay, they can sell your couch and TV to get their money back.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 7209 Warehouse Lien On Goods

(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 subdivision (a), such as for money advanced and interest. The security interest is governed by Division 9 (commencing with Section 9101). (c) A warehouse’s lien for charges and expenses under subdivision (a) or a security interest under subdivision (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 7403; or (C) power of disposition under Section 2403 or 9320 or subdivision (c) of Section 9321 or subdivision (b) of Section 10304 or subdivision (b) of Section 10305 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 subdivision (a) is also effective against all persons if the depositor was the legal possessor of the goods at the time of deposit. In this subdivision, “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. (Repealed and added by Stats. 2006, Ch. 254, Sec. 49. Effective January 1, 2007.)

Last verified: January 23, 2026

Key Terms

warehouse lienbailorwarehouse receiptstorage agreementnegotiable warehouse receiptchargesproceedssecurity interest

Related Statutes

  • § 7204 Warehouse Liability For Goods
  • § 4210 Bank Security Interest Rules
  • § 9205 Debtor Control Of Collateral
  • § 2210 Contract Performance Delegation Rules
  • § 4211 Bank Holder Due Course

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 7209.
View Official Source