§ 5-62-7 Artists – Art merchantrelationships. – (a) Notwithstanding any custom, practice or usage of the trade, any provisionof the Uniform Commercial Code or any other law, statute, requirement or rule,or any agreement, note, memorandum or writing to the contrary:
(1) Whenever an artist or craftperson, his or her heirs orpersonal representatives, delivers or causes to be delivered a work of fineart, craft or a print of his or her own creation to an art merchant for thepurpose of exhibition and/or sale on a commission, fee or other basis ofcompensation, the delivery to an acceptance of the work or print by the artmerchant establishes a cosignor/cosignee relationship as between the artist orcraftsperson and the art merchant with respect to the work, and:
(i) The cosignee shall thereafter be deemed to be the agentof the cosignor with respect to the work;
(ii) The work is trust property in the hands of the cosigneefor the benefit of the cosignor;
(iii) Any proceeds from the sale of the work are trust fundsin the hands of the cosignee for the benefit of the cosignor;
(iv) The work shall remain trust property notwithstanding itspurchase by the cosignee for his or her own account until the price is paid infull to the cosignor; provided that, if the work is resold to a bona fide thirdparty before the cosignor has been paid in full, the resale proceeds are trustfunds in the hands of the cosignee for the benefit of the cosignor to theextent necessary to pay any balance still due to the cosignor and thetrusteeship shall continue until the fiduciary obligation of the cosignee withrespect to the transaction is discharged in full; and
(v) No trust property or trust funds shall be subject orsubordinate to any claims, liens or security interest of any kind or naturewhatsoever.
(2) Waiver of any provision of this section is absolutelyvoid except that a cosignor may lawfully waive the provisions of paragraph(1)(iii) of this subsection, if the waiver is clear, conspicuous, in writingand subscribed by the cosignor, provided:
(i) No waiver shall be valid with respect to the first twothousand five hundred dollars ($2,500) of gross proceeds of sales received inany twelve (12) month period commencing with the date of the execution of thewaiver;
(ii) No waiver shall be valid with respect to the proceeds ofa work initially received on consignment but subsequently purchased by thecosignee directly or indirectly for his or her own account; and
(iii) No waiver shall inure to the benefit of the cosignee'screditors in any manner which might be inconsistent with the cosignor's rightsunder this section.
(3) Proceeds from the sale of cosigned works covered by thissection shall be deemed to be revenue from the sale of tangible goods, and notrevenue from the provision of services to the cosignor or others, except thatthe provisions of this paragraph do not apply to proceeds from the sale ofcosigned works sold at public auction.
(b) Nothing in this section shall be construed to have anyeffect upon any written or oral contract or arrangement in existence prior toSeptember 1, 2000, or to any extensions or renewals of a contract, except bymutual written consent of the parties of the contract.
§ 5-62-7 Artists – Art merchantrelationships. – (a) Notwithstanding any custom, practice or usage of the trade, any provisionof the Uniform Commercial Code or any other law, statute, requirement or rule,or any agreement, note, memorandum or writing to the contrary:
(1) Whenever an artist or craftperson, his or her heirs orpersonal representatives, delivers or causes to be delivered a work of fineart, craft or a print of his or her own creation to an art merchant for thepurpose of exhibition and/or sale on a commission, fee or other basis ofcompensation, the delivery to an acceptance of the work or print by the artmerchant establishes a cosignor/cosignee relationship as between the artist orcraftsperson and the art merchant with respect to the work, and:
(i) The cosignee shall thereafter be deemed to be the agentof the cosignor with respect to the work;
(ii) The work is trust property in the hands of the cosigneefor the benefit of the cosignor;
(iii) Any proceeds from the sale of the work are trust fundsin the hands of the cosignee for the benefit of the cosignor;
(iv) The work shall remain trust property notwithstanding itspurchase by the cosignee for his or her own account until the price is paid infull to the cosignor; provided that, if the work is resold to a bona fide thirdparty before the cosignor has been paid in full, the resale proceeds are trustfunds in the hands of the cosignee for the benefit of the cosignor to theextent necessary to pay any balance still due to the cosignor and thetrusteeship shall continue until the fiduciary obligation of the cosignee withrespect to the transaction is discharged in full; and
(v) No trust property or trust funds shall be subject orsubordinate to any claims, liens or security interest of any kind or naturewhatsoever.
(2) Waiver of any provision of this section is absolutelyvoid except that a cosignor may lawfully waive the provisions of paragraph(1)(iii) of this subsection, if the waiver is clear, conspicuous, in writingand subscribed by the cosignor, provided:
(i) No waiver shall be valid with respect to the first twothousand five hundred dollars ($2,500) of gross proceeds of sales received inany twelve (12) month period commencing with the date of the execution of thewaiver;
(ii) No waiver shall be valid with respect to the proceeds ofa work initially received on consignment but subsequently purchased by thecosignee directly or indirectly for his or her own account; and
(iii) No waiver shall inure to the benefit of the cosignee'screditors in any manner which might be inconsistent with the cosignor's rightsunder this section.
(3) Proceeds from the sale of cosigned works covered by thissection shall be deemed to be revenue from the sale of tangible goods, and notrevenue from the provision of services to the cosignor or others, except thatthe provisions of this paragraph do not apply to proceeds from the sale ofcosigned works sold at public auction.
(b) Nothing in this section shall be construed to have anyeffect upon any written or oral contract or arrangement in existence prior toSeptember 1, 2000, or to any extensions or renewals of a contract, except bymutual written consent of the parties of the contract.
§ 5-62-7 Artists – Art merchantrelationships. – (a) Notwithstanding any custom, practice or usage of the trade, any provisionof the Uniform Commercial Code or any other law, statute, requirement or rule,or any agreement, note, memorandum or writing to the contrary:
(1) Whenever an artist or craftperson, his or her heirs orpersonal representatives, delivers or causes to be delivered a work of fineart, craft or a print of his or her own creation to an art merchant for thepurpose of exhibition and/or sale on a commission, fee or other basis ofcompensation, the delivery to an acceptance of the work or print by the artmerchant establishes a cosignor/cosignee relationship as between the artist orcraftsperson and the art merchant with respect to the work, and:
(i) The cosignee shall thereafter be deemed to be the agentof the cosignor with respect to the work;
(ii) The work is trust property in the hands of the cosigneefor the benefit of the cosignor;
(iii) Any proceeds from the sale of the work are trust fundsin the hands of the cosignee for the benefit of the cosignor;
(iv) The work shall remain trust property notwithstanding itspurchase by the cosignee for his or her own account until the price is paid infull to the cosignor; provided that, if the work is resold to a bona fide thirdparty before the cosignor has been paid in full, the resale proceeds are trustfunds in the hands of the cosignee for the benefit of the cosignor to theextent necessary to pay any balance still due to the cosignor and thetrusteeship shall continue until the fiduciary obligation of the cosignee withrespect to the transaction is discharged in full; and
(v) No trust property or trust funds shall be subject orsubordinate to any claims, liens or security interest of any kind or naturewhatsoever.
(2) Waiver of any provision of this section is absolutelyvoid except that a cosignor may lawfully waive the provisions of paragraph(1)(iii) of this subsection, if the waiver is clear, conspicuous, in writingand subscribed by the cosignor, provided:
(i) No waiver shall be valid with respect to the first twothousand five hundred dollars ($2,500) of gross proceeds of sales received inany twelve (12) month period commencing with the date of the execution of thewaiver;
(ii) No waiver shall be valid with respect to the proceeds ofa work initially received on consignment but subsequently purchased by thecosignee directly or indirectly for his or her own account; and
(iii) No waiver shall inure to the benefit of the cosignee'screditors in any manner which might be inconsistent with the cosignor's rightsunder this section.
(3) Proceeds from the sale of cosigned works covered by thissection shall be deemed to be revenue from the sale of tangible goods, and notrevenue from the provision of services to the cosignor or others, except thatthe provisions of this paragraph do not apply to proceeds from the sale ofcosigned works sold at public auction.
(b) Nothing in this section shall be construed to have anyeffect upon any written or oral contract or arrangement in existence prior toSeptember 1, 2000, or to any extensions or renewals of a contract, except bymutual written consent of the parties of the contract.
