A Notice of Intent to Exercise Warehouse Lien by Auction Form. So your customer has stopped making payments on their account, but they
still have goods being stored at your location.
Well that’s not very convenient for them…but very beneficial to you! This gives you a way to recoup a portion, or maybe even all of what they owe you!
Sending this letter will serve as a way to give them a final chance to pay you. Give them a date and hope they respond.
Let them know that if they still fail to make the payment, you will exercise you’re right to file a lien against their property and plan to sell everything at an auction.
Then you can sit back, wait for the deadline to approach and hope they decide to contact you.
If not, you will know you did everything you could to make a settlement and should now begin the auction process.
In accordance with the Uniform Commercial Code, or Warehouse Receipt Act,__________________ hereby gives notice that it has a lien upon property stored within their facilities by you, for your account, or in which you claim an interest, amounting to the sum of $_____ which is now due and described as follows:
The goods against which the lien of this company exists consists of _________________________________________________ received on
_____________________, as evidenced by our warehouse receipt under
Lot No._____________, issued in the name of _________________.
We hereby demand that the amount of $ ____ be paid in cash, or by money order or certified check on or before__________, and notify you that unless said claim is paid within the herein specified time, the goods will be advertised for sale and sold at Public Auction at our warehouse, or Public Auction house located at _________________________ on _________________, sale beginning at ____.
The proceeds of such sale shall be applied to the payment of the amount of the lien, including reasonable charges of notice, sale and advertisement. If there is a deficiency after said sale, you shall be held liable for said deficiency and judgment may be entered against you.
No employee or agent of this Company has the authority to permit the release or withdrawal of any portion of the goods from a public auction sale upon receipt of a payment on account of less than the entire amount due, except by written agreement. The acceptance of a payment of less than the full amount due in the absence of a written agreement shall not constitute a waiver on the part of this Company to proceed with the herein described sale.