§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 nonnegotiable bill of lading to the seller or the seller's nominee reserves possession of the goods as security, but except in a case of conditional
delivery under section 2-507, subsection (2) a nonnegotiable 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. [2009, c. 324, Pt. B, §12 (AMD); 2009, c. 324, Pt. B, §48 (AFF).]








[
2009, c. 324, Pt. B, §12 (AMD);
2009, c. 324, Pt. B, §48 (AFF)
.]








(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
section 2-504 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.


[
2009, c. 324, Pt. B, §13 (AMD);
2009, c. 324, Pt. B, §48 (AFF)
.]





SECTION HISTORY

2009, c. 324, Pt. B, §§12, 13 (AMD).
2009, c. 324, Pt. B, §48 (AFF).