§ 2-A-526 — Lessor's Stoppage of Delivery in Transit or Otherwise

Section 2-A-526. Lessor's Stoppage of Delivery in Transit or Otherwise.\n (1) A lessor may stop delivery of goods in the possession of a carrier\nor other bailee if the lessor discovers the lessee to be insolvent and\nmay stop delivery of carload, truckload, planeload, or larger shipments\nof express or freight if the lessee repudiates or fails to make a\npayment due before delivery, whether for rent, security or otherwise\nunder the lease contract, or for any other reason the lessor has a right\nto withhold or take possession of the goods.\n (2) In pursuing its remedies under subsection (1), the lessor may stop\ndelivery until:\n (a) receipt of the goods by the lessee;\n (b) acknowledgment to the lessee by any bailee of the goods,\n except a carrier, that the bailee holds the goods for the\n lessee; or\n (c) such an acknowledgment to the lessee by a carrier via\n reshipment or as a warehouse.\n (3) (a) To stop delivery, a lessor shall so notify as to enable the\nbailee by reasonable diligence to prevent delivery of the goods.\n (b) After notification, the bailee shall hold and deliver the\n goods according to the directions of the lessor, but the\n lessor is liable to the bailee for any ensuing charges or\n damages.\n (c) A carrier who has issued a nonnegotiable bill of lading is\n not obliged to obey a notification to stop received from a\n person other than the consignor.\n