§ 26-1-2-402 — Rights of seller's creditors against sold goods

Indiana § 26-1-2-402

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 2: Sales

Text

(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 IC 26-1-2-502 and IC 26-1-2-716.
(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 IC 26-1-2 shall be deemed to impair the rights of
creditors of the seller:
(a) under the provisions of IC 26-1-9.1 on secured transactions;
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 IC 26-1-2
constitute the transaction a fraudulent transfer or voidable
preference.
Formerly: Acts 1963, c.317, s.2-402. As amended by
P.L.152-1986, SEC.142; P.L.57-2000, SEC.19.