§ 41-02-53 — (2-505) Seller's shipment under reservation

North Dakota § 41-02-53

• Jurisdiction: North Dakota
• Title 41: Uniform Commercial Code
• Ch. 41-02: Sales

Text

1. If 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. A non-negotiable bill of lading to the seller or the seller's nominee reserves
possession of the goods as security but except in a case of conditional delivery
(subsection 2 of section 41-02-55) a non-negotiable 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 section
41-02-52 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.