Section 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 thirty (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 of this title.(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) of this section and Section 7-210 of this title, the warehouse may specify in the notice given under subsection (a) of this section 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 (1) 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 article 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.Okla. Stat. tit. 12A, § 7-206
Laws 1961, p. 142, § 7-206; Amended by Laws 2005 , HB 2035, c. 140, § 11, eff. 1/1/2006.Oklahoma Code Comment
Prior Statutory Provisions:
2 O.S. §§ 9-92, 9-93.
Text and derivation of prior provisions, see Appendix at end of this title.
Comment:
(1) This is new.
(2) Subsections (2) and (3) are a rewording and modification of former 2 O.S. § 9-93. The previous law combined goods which were perishable and hazardous goods and applied the same principles to both. The Commercial Code separates them, with different rules for each. The difference lies mostly in the notice. The previous law required such notice as was reasonable and possible under the circumstances. However, as to goods which are about to deteriorate or decline in value, there is not such an immediate emergency to necessitate a summary power of sale. Thus, as to these goods, the Commercial Code requires notification, advertising and a public sale held not less than one week after the advertising.
(3) Goods which are a hazard to other goods require more immediate action. Thus, the Commercial Code permits summary action by the warehouseman in the same manner as was permitted in former 2 O.S. § 9- 93.
(4) This is new. This preserves the owner's right to pay the necessary charge and receive possession until sale.
(5) Previous Oklahoma law is in accord. Former 2 O.S. §§ 9-93 and 9-92.