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This entry was published on 2014-09-22
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SECTION 2-402
Rights of Seller's Creditors Against Sold Goods
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 4
Section 2--402. Rights of Seller's Creditors Against Sold Goods.

(1) Except as provided in subsections (2) and (3), rights of unsecured
creditors of the seller with respect to goods which have been identified
to a contract for sale are subject to the buyer's rights to recover the
goods under this Article (Sections 2--502 and 2--716).

(2) A creditor of the seller may treat a sale or an identification of
goods to a contract for sale as void if as against him a retention of
possession by the seller as fraudulent under any rule of law of the
state where the goods are situated, except that retention of possession
in good faith and current course of trade by a merchant-seller for a
commercially reasonable time after a sale or identification is not
fraudulent.

(3) Nothing in this Article shall be deemed to impair the rights of
creditors of the seller

(a) under the provisions of the Article on Secured Transactions

(Article 9); or

(b) where identification to the contract or delivery is made not

in current course of trade but in satisfaction of or as

security for a pre-existing claim for money, security or the

like and is made under circumstances which under any rule of

law of the state where the goods are situated would apart

from this Article constitute the transaction a fraudulent

transfer or voidable preference.