New York § 2-402 Rights of Seller's Creditors Against Sold Goods

New York Statutes

§ 2-402 — Rights of Seller's Creditors Against Sold Goods

New York § 2-402

Law UCCUniform Commercial Code

Part 4Title, Creditors and Good Faith Purchasers

Art. 2Sales

This text of New York § 2-402 (Rights of Seller's Creditors Against Sold Goods) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 2-402 (2026).

Text

Section 2--402. Rights of Seller's Creditors Against Sold Goods.\n  (1) Except as provided in subsections (2) and (3), rights of unsecured\ncreditors of the seller with respect to goods which have been identified\nto a contract for sale are subject to the buyer's rights to recover the\ngoods under this Article (Sections 2--502 and 2--716).\n  (2) A creditor of the seller may treat a sale or an identification of\ngoods to a contract for sale as void if as against him a retention of\npossession by the seller as fraudulent under any rule of law of the\nstate where the goods are situated, except that retention of possession\nin good faith and current course of trade by a merchant-seller for a\ncommercially reasonable time after a sale or identification is not\nfraudulent.\n  (3) Nothing in thi

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Section 2--402. Rights of Seller's Creditors Against Sold Goods.\n (1) Except as provided in subsections (2) and (3), rights of unsecured\ncreditors of the seller with respect to goods which have been identified\nto a contract for sale are subject to the buyer's rights to recover the\ngoods under this Article (Sections 2--502 and 2--716).\n (2) A creditor of the seller may treat a sale or an identification of\ngoods to a contract for sale as void if as against him a retention of\npossession by the seller as fraudulent under any rule of law of the\nstate where the goods are situated, except that retention of possession\nin good faith and current course of trade by a merchant-seller for a\ncommercially reasonable time after a sale or identification is not\nfraudulent.\n (3) Nothing in this Article shall be deemed to impair the rights of\ncreditors of the seller\n (a) under the provisions of the Article on Secured Transactions\n (Article 9); or\n (b) where identification to the contract or delivery is made not\n in current course of trade but in satisfaction of or as\n security for a pre-existing claim for money, security or the\n like and is made under circumstances which under any rule of\n law of the state where the goods are situated would apart\n from this Article constitute the transaction a fraudulent\n transfer or voidable preference.\n