47-2505. Seller's shipment under
reservation
A. Where the seller has identified goods to the contract by or before shipment:
1. His procurement of a negotiable bill of lading to his own order or otherwise
reserves in him a security interest in the goods. His procurement of the bill to the
order of a financing agency or of the buyer indicates in addition only the seller's
expectation of transferring that interest to the person named.
2. A nonnegotiable bill of lading to himself or his nominee reserves possession of
the goods as security but except in a case of conditional delivery (subsection B of
section 47-2507) a nonnegotiable bill of lading naming the buyer as consignee reserves no
security interest even though the seller retains possession or control of the bill of
lading.
B. When shipment by the seller with reservation of a security interest is in
violation of the contract for sale it constitutes an improper contract for transportation
within section 47-2504 but impairs neither the rights given to the buyer by shipment and
identification of the goods to the contract nor the seller's powers as a holder of a
negotiable document of title.
|