§ 26-1-2-505 — Seller's shipment under reservation

Indiana § 26-1-2-505

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

Text

(1) Where the seller has identified goods
to the contract by or before shipment:
(a) His procurement of a negotiable bill of lading to his own order
or otherwise reserves in him a security interest in the goods. His
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) A nonnegotiable bill of lading to himself or his nominee
reserves possession of the goods as security, but except in a case
of conditional delivery (IC 26-1-2-507(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 contract for sale, it constitutes an improper
contract for transportation within IC 26-1-2-504, 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.
Formerly: Acts 1963, c.317, s.2-505. As amended by
P.L.152-1986, SEC.146; P.L.143-2007, SEC.14.