MARVIN MANDEL, Governor

225

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 account 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 then in accordance with the provisions of the
section on enforcement of a warehouseman's lien (§
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 notification 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