§ 4-2-402 — Rights of seller's creditors against sold goods

Colorado § 4-2-402

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Sales

Text

(1) Except as
provided in subsections (2) and (3) of this section, 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 4-2-502 and 4-2-716).

(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 is
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 of
this title); 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 preexisting 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.

Legislative History

Source: L. 65: p. 1320, � 1. C.R.S. 1963: � 155-2-402.