J. MILLARD TAWES, Governor                        889

request of the bailor at the time of signing such storage agreement
or within a reasonable time after receipt of the warehouse receipt
be increased on part or all of the goods thereunder, in which event
increased rates may be charged based on such increased valuation,
but that no such increase shall be permitted contrary to a lawful
limitation of liability contained in the warehouseman's tariff, if any.
No such limitation is effective with respect to the warehouseman's
liability for conversion to his own use.

(3) Reasonable provisions as to the time and manner of presenting
claims and instituting actions based on the bailment may be included
in the warehouse receipt or tariff.

7—205. Title Under Warehouse Receipt Defeated in Certain Cases,

A buyer in the ordinary course of business of fungible goods sold
and delivered by a warehouseman who is also in the business of
buying and selling such goods takes free of any claim under a
warehouse receipt even though it has been duly negotiated.

7—206. Termination of Storage at Warehouseman's Option.

(1)  A warehouseman may on notifying the person on whose ac-
count the goods are held and any other person known to claim an
interest in the goods 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, or, if no period is fixed, within a
stated period not less than thirty days after the notification. If the
goods are not removed before the date specified in the notification,
the warehouseman may sell them in accordance with the provisions
of the section on enforcement of a warehouseman's lien (Section
7—210).

(2)  If a warehouseman in good faith believes that the goods are
about to deteriorate or decline in value to less than the amount of
his lien within the time prescribed in subsection (1) for notification,
advertisement and sale, the warehouseman may specify in the notifi-
cation any reasonable shorter time for removal of the goods and in
case the goods are not removed, may sell them at public sale held not
less than one week after a single advertisement or posting.

(3)  If as a result of a quality or condition of the goods of which
the warehouseman had no notice at the time of deposit the goods
are a hazard to other property or to the warehouse or to persons, the
warehouseman may sell the goods at public or private sale without
advertisement on reasonable notification to all persons known to
claim an interest in the goods. If the warehouseman after a reason-
able effort is unable to sell the goods he may dispose of them in any
lawful manner and shall incur no liability by reason of such dis-
position.

(4) The warehouseman must deliver the goods to any person en-
titled to them under this Sub-title upon due demand made at any
time prior to sale or other disposition under this section.

(5) The warehouseman may satisfy his lien from the proceeds of
any sale or disposition under this section but must hold the balance
for delivery on the demand of any person to whom he would have
been bound to deliver the goods.