§2A-526. Lessor's stoppage of delivery in transit or otherwise

Link to law: http://legislature.vermont.gov/statutes/section/09A/002A/00526
Published: 2015

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Title

09A

:
Uniform Commercial Code






Chapter

002A

:
Leases











 

§

2A-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) of this section, 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 damages.

(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. (Added

1993, No. 158 (Adj. Sess.), § 10, eff. Jan. 1, 1995; amended 2015, No. 51, §

B.6, eff. June 3, 2015.)
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