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The Vermont Statutes Online
Title
09A
:
Uniform Commercial Code
Chapter
002
:
Sales
§
2-505. Seller's shipment under reservation
(1) Where the
seller has identified goods to the contract by or before shipment:
(a) his or her
procurement of a negotiable bill of lading to his or her own order or otherwise
reserves in him or her a security interest in the goods. His or her 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 herself or his or her nominee
reserves possession of the goods as security but except in a case of
conditional delivery (§ 2-507(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.
(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. (Amended 2015, No. 51, §
B.5, eff. June 3, 2015.)