Legislation

Search OpenLegislation Statutes
This entry was published on 2015-02-20
The selection dates indicate all change milestones for the entire volume, not just the location being viewed. Specifying a milestone date will retrieve the most recent version of the location before that date.
SECTION 2-505
Seller's Shipment Under Reservation
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 5
Section 2--505. Seller's Shipment Under Reservation.

(1) Where the seller has identified goods to the contract by or before
shipment:

(a) his procurement of a negotiable bill of lading to his own

order or otherwise reserves in him a security interest in the

goods. His procurement of the bill to the order of a

financing agency or of the buyer indicates in addition only

the seller's expectation of transferring that interest to the

person named.

(b) a non-negotiable bill of lading to himself or his nominee

reserves possession of the goods as security but except in a

case of conditional delivery (subsection (2) of Section

2--507) a non-negotiable bill of lading naming the buyer as

consignee reserves no security interest even though the

seller retains possession or control of the bill of lading.

(2) When shipment by the seller with reservation of a security
interest is in violation of the contract for sale it constitutes an
improper contract for transportation within the preceding section but
impairs neither the rights given to the buyer by shipment and
identification of the goods to the contract nor the seller's powers as a
holder of a negotiable document of title.