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This entry was published on 2014-12-26
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Lessor's Stoppage of Delivery in Transit or Otherwise
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2-A, PART 5
Section 2-A-526. Lessor's Stoppage of Delivery in Transit or Otherwise.

(1) A lessor may stop delivery of goods in the possession of a carrier
or other bailee if the lessor discovers the lessee to be insolvent and
may stop delivery of carload, truckload, planeload, or larger shipments
of express or freight if the lessee repudiates or fails to make a
payment due before delivery, whether for rent, security or otherwise
under the lease contract, or for any other reason the lessor has a right
to withhold or take possession of the goods.

(2) In pursuing its remedies under subsection (1), the lessor may stop
delivery until:

(a) receipt of the goods by the lessee;

(b) acknowledgment to the lessee by any bailee of the goods,

except a carrier, that the bailee holds the goods for the

lessee; or

(c) such an acknowledgment to the lessee by a carrier via

reshipment or as a warehouse.

(3) (a) To stop delivery, a lessor shall so notify as to enable the
bailee by reasonable diligence to prevent delivery of the goods.

(b) After notification, the bailee shall hold and deliver the

goods according to the directions of the lessor, but the

lessor is liable to the bailee for any ensuing charges or


(c) A carrier who has issued a nonnegotiable bill of lading is

not obliged to obey a notification to stop received from a

person other than the consignor.