TITLE 6A

Uniform Commercial Code

CHAPTER 6A-2

Sales

PART 6A-2-501

Performance

SECTION 6A-2-505



   § 6A-2-505  Seller's shipment under

reservation. –

(1) Where the seller has identified goods to the contract by or before shipment:



   (a) The seller's 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. The seller's 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 his or

her nominee reserves possession of the goods as security but, except in a case

of conditional delivery (§ 6A-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.



History of Section.

(P.L. 1960, ch. 147, § 1; P.L. 2006, ch. 112, § 2; P.L. 2006, ch.

135, § 2.)