§ 26-1-2-501 — Insurable interest in goods; manner of identification of goods

Indiana § 26-1-2-501

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

Text

(1) The buyer obtains a special property
and an insurable interest in goods by identification of existing goods as
goods to which the contract refers even though the goods so identified
are nonconforming and he has an option to return or reject them. Such
identification can be made at any time and in any manner explicitly
agreed to by the parties. In the absence of explicit agreement
identification occurs
(a) when the contract is made if it is for the sale of goods already
existing and identified;
(b) if the contract is for the sale of future goods other than those
described in paragraph (c), when goods are shipped, marked or
otherwise designated by the seller as goods to which the contract refers;
(c) when the crops are planted or otherwise become growing crops
or the young are conceived if the contract is for the sale of unborn
young to be born within twelve (12) months after contracting or for the
sale of crops to be harvested within twelve (12) months or the next
normal harvest season after contracting whichever is longer.
(2) The seller retains an insurable interest in goods so long as title
to or any security interest in the goods remains in him and where the
identification is by the seller alone he may until default or insolvency
or notification to the buyer that the identification is final substitute
other goods for those identified.
(3) Nothing in this section impairs any insurable interest recognized
under any other statute or rule of law.
Formerly: Acts 1963, c.317, s.2-501.