Factors

A factor has a general lien for all commissions due him and for all expenditures, including advances plus interest, properly incurred. A factor's lien secures the compensation, expenses, advances, and liabilities incurred by him for the principal. A factor is not entitled to a lien unless he has fulfilled all contractual and statutory requirements. He must have actual or constructive possession of the goods before the lien attaches; and if the factor has constructive possession of the goods, he must have control over the property before a lien attaches. Once attached, a lien is waived only by express terms or by clear implication, such as when the factor acts in a manner that is inconsistent with its CONTINUANCE. Fraud or misconduct in transacting the principal's business are other grounds for waiving a lien. A factor may enforce his lien by retaining the entrusted property until his claims are liquidated, or he may sell the goods in order to satisfy his claims, returning any excess to the principal.