§2-505. Seller's shipment under reservation

Link to law: http://legislature.vermont.gov/statutes/section/09A/002/00505
Published: 2015

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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.)
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