§ 41-02-81 — (2-702) Seller's remedies on discovery of buyer's insolvency

North Dakota § 41-02-81

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

Text

1. When the seller discovers the buyer to be insolvent, the seller may refuse delivery
except for cash including payment for all goods theretofore delivered under the
contract, and stop delivery under this chapter (section 41-02-84).
2. If the seller discovers that the buyer has received goods on credit while insolvent the
seller may reclaim the goods upon demand made within ten days after the receipt, but
if misrepresentation of solvency has been made to the particular seller in writing within
three months before delivery, the ten-day limitation does not apply. Except as provided
in this subsection, the seller may not base a right to reclaim goods on the buyer's
fraudulent or innocent misrepresentation of solvency or of intent to pay.
3. The seller's right to reclaim under subsection 2 is subject to the rights of a buyer in
ordinary course or other good-faith purchaser under this chapter (section 41-02-48).
Successful reclamation of goods excludes all other remedies with respect to them.
4. Notwithstanding any other provision of this section, a producer of agricultural products,
upon discovery of the buyer's insolvency, may reclaim the products within ten days
after the receipt, but if misrepresentation of solvency has been made to the producer
in writing within three months before delivery, the ten-day limitation does not apply.
The producer's right to reclaim is not subject to the rights of a buyer in the ordinary
course of business or other good-faith purchaser.