§ 2-501 — Insurable Interest in Goods; Manner of Identification of Goods

New York § 2-501

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 5: Performance
• Art. 2: Sales

Text

Section 2--501. Insurable Interest in Goods; Manner of Identification of\n Goods.\n (1) The buyer obtains a special property and an insurable interest in\ngoods by identification of existing goods as goods to which the contract\nrefers even though the goods so identified are non-conforming and he has\nan option to return or reject them. Such identification can be made at\nany time and in any manner explicitly agreed to by the parties. In the\nabsence of explicit agreement identification occurs\n (a) when the contract is made if it is for the sale of goods\n already existing and identified;\n (b) if the contract is for the sale of future goods other than\n those described in paragraph (c), when goods are shipped,\n marked or otherwise designated by the seller as goods to\n which the contract refers;\n (c) when the crops are planted or otherwise become growing crops\n or the young are conceived if the contract is for the sale of\n unborn young to be born within twelve months after\n contracting or for the sale of crops to be harvested within\n twelve months or the next normal harvest season after\n contracting whichever is longer.\n (2) The seller retains an insurable interest in goods so long as title\nto or any security interest in the goods remains in him and where the\nidentification is by the seller alone he may until default or insolvency\nor notification to the buyer that the identification is final substitute\nother goods for those identified.\n (3) Nothing in this section impairs any insurable interest recognized\nunder any other statute or rule of law.\n