PART 5. 
PERFORMANCE



 



§490:2-501  Insurable interest in goods;
manner of identification of goods.  (1)  The buyer obtains a special
property and an insurable interest in goods by identification of existing goods
as goods to which the contract refers even though the goods so identified are
nonconforming and he has an option to return or reject them.  Such
identification can be made at any time and in any manner explicitly agreed to
by the parties.  In the absence of explicit agreement identification occurs:



(a) When the contract is made if it is for the sale
of goods already existing and identified;



(b) If the contract is for the sale of future goods
other than those described in paragraph (c), when the goods are shipped, marked
or otherwise designated by the seller as goods to which the contract refers;



(c) When the crops are planted or otherwise become
growing crops or the young are conceived if the contract is for the sale of
unborn young to be born within twelve months after contracting or for the sale
of crops to be harvested within twelve months or the next normal harvest season
after contracting whichever is longer.



(2)  The seller retains an insurable interest
in goods so long as title to or any security interest in the goods remains in
him and where the identification is by the seller alone he may until default or
insolvency or notification to the buyer that the identification is final
substitute other goods for those identified.



(3)  Nothing in this section impairs any
insurable interest recognized under any other statute or rule of law. [L 1965,
c 208, §2-501; HRS §490:2-501]