§ 554.2505 — Seller’s shipment under reservation

Iowa § 554.2505

• Jurisdiction: Iowa
• Title XIII: COMMERCE
• Ch. 554: UNIFORM COMMERCIAL CODE

Text

1. Where the seller has identified goods to the contract by or before shipment:
a. the seller’s procurement of a negotiable bill of lading to the seller’s own order or
otherwise reserves in the seller a security interest in the goods. The seller’s 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. anonnegotiablebillofladingtothesellerortheseller’snomineereservespossessionof
thegoodsassecurity,butexceptinacaseofconditionaldelivery(section554.2507,subsection
2) a nonnegotiable 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
contractforsaleitconstitutesanimpropercontractfortransportationundersection554.2504

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.

Legislative History

[C24,27,31,35,39,§9949; C46,50,54,58,62,§554.21; C66,71,73,75,77,79,81,§554.2505]