If an art dealer accepts a work of fine art on a fee, commission, or other compensation
basis, on consignment from the artist:
(1) The art dealer is, with respect to that work of fine art, the agent of the artist.
(2) The work of fine art is trust property and the art dealer is trustee for the benefit
of the artist until the work of fine art is sold to a bona fide third party.
(3) The proceeds of the sale of the work of fine art are trust property and the art
dealer is trustee for the benefit of the artist until the amount due the artist from
the sale is paid. These trust funds shall be paid to the artist within thirty days of receipt by the
art dealer unless the parties expressly agree otherwise in writing. If the sale of the work of fine art is on installment, the funds from the installment
shall first be applied to pay any balance due the artist on the sale, unless the artist
expressly agrees in writing that the proceeds on each installment shall be paid according
to a percentage established by the consignment agreement.
(4) The art dealer is strictly liable for the loss of or damage to the work of fine
art while it is in the art dealer's possession. For the purpose of this subsection the value of the work of fine art is the value
established in a written agreement between the artist and art dealer prior to the
loss or damage or, if no written agreement regarding the value of the work of fine
art exists, the fair market value of the work of fine art.
A work of fine art which is trust property when initially accepted by the art dealer
remains trust property notwithstanding the subsequent purchase of the work of fine
art by the art dealer directly or indirectly for the art dealer's own account until
the purchase price is paid in full to the artist. No property which is trust property under this section is subject to the claims, liens,
or security interests of the creditors of the art dealer.
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