Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.02-504

Section 400.2-505.1

400.02-506→

August 28, 2015

Seller's shipment under reservation.

400.2-505. (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 himself or his nominee reserves

possession of the goods as security but except in a case of conditional

delivery (subsection (2) of section 400.2-507) a nonnegotiable bill of lading

naming the buyer as consignee reserves no security interest even though the

seller retains possession 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 section 400.2-504 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.



(L. 1963 p. 503 § 2-505)







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