§ 41-02-47 — (2-402) Rights of seller's creditors against sold goods

North Dakota § 41-02-47

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02: 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 this chapter (sections 41-02-50 and
41-02-95).
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 that creditor 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 chapter shall be deemed to impair the rights of creditors of the seller:
a. Under the provisions of the chapter on secured transactions (chapter 41-09); or
b. If 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 this chapter constitute the
transaction a fraudulent transfer or voidable preference.