North Dakota § 41-02.1-74 (2A-526) Lessor's stoppage of delivery in transit or otherwise

North Dakota Statutes

§ 41-02.1-74 — (2A-526) Lessor's stoppage of delivery in transit or otherwise

North Dakota § 41-02.1-74

Title 41Uniform Commercial Code

Ch. 41-02.1Leases

This text of North Dakota § 41-02.1-74 ((2A-526) Lessor's stoppage of delivery in transit or otherwise) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 41-02.1-74 (2026).

Text

1.A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security, or otherwise under the lease contract, or for any other reason that the lessor has a right to withhold or take possession of the goods.

2.In pursuing its remedies under subsection 1, the lessor may stop delivery until:

a.Receipt of the goods by the lessee;

b.Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or

c.Such an acknowledgment to the lessee by a carrier via reshipment or as a

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1. A lessor may stop delivery of goods in the possession of a carrier or other bailee if the
lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload,
planeload, or larger shipments of express or freight if the lessee repudiates or fails to
make a payment due before delivery, whether for rent, security, or otherwise under the
lease contract, or for any other reason that the lessor has a right to withhold or take
possession of the goods.
2. In pursuing its remedies under subsection 1, the lessor may stop delivery until:
a. Receipt of the goods by the lessee;
b. Acknowledgment to the lessee by any bailee of the goods, except a carrier, that
the bailee holds the goods for the lessee; or
c. Such an acknowledgment to the lessee by a carrier via reshipment or as a
warehouse.
3. a. To stop delivery, a lessor shall so notify as to enable the bailee by reasonable
diligence to prevent delivery of the goods.
b. After notification, the bailee shall hold and deliver the goods according to the
directions of the lessor, but the lessor is liable to the bailee for any ensuing
charges or damages.
c. A carrier who has issued a non-negotiable bill of lading is not obliged to obey a
notification to stop received from a person other than the consignor.