Sec. 9. (a) If an item is trust property under section 8 of this chapter when a retail merchant initially receives it, the item remains trust property until the balance due the consignor from the sale of the item is paid in full, even if the retail merchant directly or indirectly purchases the item for the retail merchant’s own account.

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Terms Used In Indiana Code 24-4-17-9

  • bona fide purchaser: means a person who in good faith makes a purchase without notice of any outstanding rights of others. See Indiana Code 24-4-17-2
  • Fiduciary: A trustee, executor, or administrator.
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Property: includes personal and real property. See Indiana Code 1-1-4-5
  • retail merchant: means a retail merchant making a retail transaction as described in Indiana Code 24-4-17-7
     (b) If a retail merchant resells an item described in subsection (a) to a bona fide purchaser before the consignor has been paid in full, the item ceases to be trust property and the proceeds of the resale are trust funds in the hands of the retail merchant for the benefit of the consignor to the extent necessary to pay any balance due the consignor. The trusteeship of the proceeds continues until the fiduciary obligation of the retail merchant with respect to the transaction is discharged in full.

As added by P.L.85-2009, SEC.2. Amended by P.L.1-2010, SEC.95.

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