New York § 2-702 Seller's Remedies on Discovery of Buyer's Insolvency

New York Statutes

§ 2-702 — Seller's Remedies on Discovery of Buyer's Insolvency

New York § 2-702

Law UCCUniform Commercial Code

Part 7Remedies

Art. 2Sales

This text of New York § 2-702 (Seller's Remedies on Discovery of Buyer's Insolvency) 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 § 2-702 (2026).

Text

Section 2--702. Seller's Remedies on Discovery of Buyer's Insolvency.\n  (1) Where the seller discovers the buyer to be insolvent he may refuse\ndelivery except for cash including payment for all goods theretofore\ndelivered under the contract, and stop delivery under this Article\n(Section 2--705).\n  (2) Where the seller discovers that the buyer has received goods on\ncredit while insolvent he may reclaim the goods upon demand made within\nten days after the receipt, but if misrepresentation of solvency has\nbeen made to the particular seller in writing within three months before\ndelivery the ten day limitation does not apply. Except as provided in\nthis subsection the seller may not base a right to reclaim goods on the\nbuyer's fraudulent or innocent misrepresentation of solvency or of

Free access — add to your briefcase to read the full text and ask questions with AI

Section 2--702. Seller's Remedies on Discovery of Buyer's Insolvency.\n (1) Where the seller discovers the buyer to be insolvent he may refuse\ndelivery except for cash including payment for all goods theretofore\ndelivered under the contract, and stop delivery under this Article\n(Section 2--705).\n (2) Where the seller discovers that the buyer has received goods on\ncredit while insolvent he may reclaim the goods upon demand made within\nten days after the receipt, but if misrepresentation of solvency has\nbeen made to the particular seller in writing within three months before\ndelivery the ten day limitation does not apply. Except as provided in\nthis subsection the seller may not base a right to reclaim goods on the\nbuyer's fraudulent or innocent misrepresentation of solvency or of\nintent to pay.\n (3) The seller's right to reclaim under subsection (2) is subject to\nthe rights of a buyer in ordinary course or other good faith purchaser\nunder this Article (Section 2--403). Successful reclamation of goods\nexcludes all other remedies with respect to them.\n