N.Y. Uniform Commercial Code 2-505 – Seller's Shipment Under Reservation
Section 2–505. Seller's Shipment Under Reservation.
Terms Used In N.Y. Uniform Commercial Code 2-505
- Buyer: means a person who buys or contracts to buy goods. See N.Y. Uniform Commercial Code 2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See N.Y. Uniform Commercial Code 2-106
- Seller: means a person who sells or contracts to sell goods. See N.Y. Uniform Commercial Code 2-103
(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 non-negotiable 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
2–507) a non-negotiable 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.