Indiana Code 26-1-2-505. Seller’s shipment under reservation
(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.
Terms Used In Indiana Code 26-1-2-505
- Contract: A legal written agreement that becomes binding when signed.
(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 IC 26-1-2-504, 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 of title.
Formerly: Acts 1963, c.317, s.2-505. As amended by P.L.152-1986, SEC.146; P.L.143-2007, SEC.14.