§490:2-702  Seller's remedies on discovery
of buyer's insolvency.  (1)  Where the seller discovers the buyer to be
insolvent he may refuse delivery except for cash including payment for all
goods theretofore delivered under the contract, and stop delivery under this article
(section 490:2-705).



(2)  Where the seller discovers that the buyer
has received goods on credit while insolvent he may reclaim the goods upon
demand made within ten days after the receipt, but if misrepresentation of
solvency has been made to the particular seller in writing within three months
before delivery the ten day limitation does not apply.  Except as provided in
this subsection the seller may not base a right to reclaim goods on the buyer's
fraudulent or innocent misrepresentation of solvency or of intent to pay.



(3)  The seller's right to reclaim under
subsection (2) is subject to the rights of a buyer in ordinary course or other
good faith purchaser or lien creditor under this article (section 490:2-403). 
Successful reclamation of goods excludes all other remedies with respect to
them. [L 1965, c 208, §2-702; HRS §490:2-702]