1-1     By:  Cain                                             S.B. No. 1740
 1-2           (In the Senate - Filed March 9, 2001; March 14, 2001, read
 1-3     first time and referred to Committee on Business and Commerce;
 1-4     April 19, 2001, reported favorably by the following vote:  Yeas 5,
 1-5     Nays 0; April 19, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to requirements for establishing a warehouseman's lien.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subsections (a) and (b), Section 7.209, Business
1-11     & Commerce Code, are amended to read as follows:
1-12           (a)(1)  A warehouseman has a lien against the bailor on the
1-13     goods deposited [covered by a warehouse receipt] or on the proceeds
1-14     thereof in his possession for charges for storage or transportation
1-15     (including demurrage and terminal charges), insurance, labor, or
1-16     charges present or future in relation to the goods, and for
1-17     expenses necessary for preservation of the goods or reasonably
1-18     incurred in their sale pursuant to law.
1-19                 (2)  If the person on whose account the goods are held
1-20     is liable for like charges or expenses in relation to other goods
1-21     whenever deposited [and it is stated in the receipt that a lien is
1-22     claimed for charges and expenses in relation to other goods], the
1-23     warehouseman also has a lien against him for such charges and
1-24     expenses whether or not the other goods have been delivered by the
1-25     warehouseman.  But against a person to whom a negotiable warehouse
1-26     receipt is duly negotiated a warehouseman's lien is limited to
1-27     charges in an amount or at a rate specified on the receipt or if no
1-28     charges are so specified then to a reasonable charge for storage of
1-29     the goods covered by the receipt subsequent to the date of the
1-30     receipt.
1-31           (b)  The warehouseman may also reserve a security interest
1-32     against the bailor [for a maximum amount specified on the receipt]
1-33     for charges other than those specified in Subsection (a), such as
1-34     for money advanced and interest.  If a warehouse receipt is issued
1-35     for the goods, the security interest is not valid against a third
1-36     person without notice to whom the receipt is duly negotiated unless
1-37     the maximum amount of the security interest is conspicuously
1-38     specified on the receipt.  Such a security interest is governed by
1-39     the chapter on Secured Transactions (Chapter 9).
1-40           SECTION 2.  This Act takes effect September 1, 2001.  The
1-41     change in law made by this Act applies only to goods delivered to a
1-42     warehouseman on or after the effective date of this Act.  Goods
1-43     delivered to a warehouseman before the effective date of this Act
1-44     are governed by the law in effect immediately before the effective
1-45     date of this Act, and that law is continued in effect for that
1-46     purpose.
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