N.Y. Uniform Commercial Code 2-402 – Rights of Seller's Creditors Against Sold Goods
Section 2–402. Rights of Seller's Creditors Against Sold Goods.
Terms Used In N.Y. Uniform Commercial Code 2-402
- 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) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Article (Sections 2–502 and 2–716).
(2) A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller as fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent.
(3) Nothing in this Article shall be deemed to impair the rights of creditors of the seller
(a) under the provisions of the Article on Secured Transactions
(Article 9); or
(b) where identification to the contract or delivery is made not
in current course of trade but in satisfaction of or as
security for a pre-existing claim for money, security or the
like and is made under circumstances which under any rule of
law of the state where the goods are situated would apart
from this Article constitute the transaction a fraudulent
transfer or voidable preference.