400.2-402. Rights of seller's creditors against sold goods. - Missouri Statutes

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Statutes > Missouri > T26 > C400 > 400_2-402

Rights of seller's creditors against sold goods.

400.2-402. (1) Except as provided in subsections (2) and(3), right of unsecured creditors of the seller with respect togoods which have been identified to a contract for sale aresubject to the buyer's rights to recover the goods under thisarticle (sections 400.2-502 and 400.2-716).

(2) A creditor of the seller may treat a sale or anidentification of goods to a contract for sale as void if asagainst him a retention of possession by the seller is fraudulentunder any rule of law of the state where the goods are situated,except that retention of possession in good faith and currentcourse of trade by a merchant-seller for a commerciallyreasonable time after a sale or identification is not fraudulent.

(3) Nothing in this article shall be deemed to impair therights of creditors of the seller

(a) under the provisions of the article on securedtransactions (article 9); or

(b) where identification to the contract or delivery is madenot in current course of trade but in satisfaction of or assecurity for a preexisting claim for money, security or the likeand is made under circumstances which under any rule of law ofthe state where the goods are situated would apart from thisarticle constitute the transaction a fraudulent transfer orvoidable preference.

(L. 1963 p. 503 § 2-402)
(1971) Subsection (1) of this section does not require a reversal of a holding that barrel staves sold by bankrupt to purchaser before filing of bankruptcy petition but left on bankrupt's premises to "cure" was not in constructive possession of the purchaser and the transaction was void as against the creditors of the bankrupt vendor. In re Gowen (C.A. Mo.), 451 F.2d 994.

State Codes and Statutes

Statutes > Missouri > T26 > C400 > 400_2-402

Rights of seller's creditors against sold goods.

400.2-402. (1) Except as provided in subsections (2) and(3), right of unsecured creditors of the seller with respect togoods which have been identified to a contract for sale aresubject to the buyer's rights to recover the goods under thisarticle (sections 400.2-502 and 400.2-716).

(2) A creditor of the seller may treat a sale or anidentification of goods to a contract for sale as void if asagainst him a retention of possession by the seller is fraudulentunder any rule of law of the state where the goods are situated,except that retention of possession in good faith and currentcourse of trade by a merchant-seller for a commerciallyreasonable time after a sale or identification is not fraudulent.

(3) Nothing in this article shall be deemed to impair therights of creditors of the seller

(a) under the provisions of the article on securedtransactions (article 9); or

(b) where identification to the contract or delivery is madenot in current course of trade but in satisfaction of or assecurity for a preexisting claim for money, security or the likeand is made under circumstances which under any rule of law ofthe state where the goods are situated would apart from thisarticle constitute the transaction a fraudulent transfer orvoidable preference.

(L. 1963 p. 503 § 2-402)
(1971) Subsection (1) of this section does not require a reversal of a holding that barrel staves sold by bankrupt to purchaser before filing of bankruptcy petition but left on bankrupt's premises to "cure" was not in constructive possession of the purchaser and the transaction was void as against the creditors of the bankrupt vendor. In re Gowen (C.A. Mo.), 451 F.2d 994.

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State Codes and Statutes

Statutes > Missouri > T26 > C400 > 400_2-402

Rights of seller's creditors against sold goods.

400.2-402. (1) Except as provided in subsections (2) and(3), right of unsecured creditors of the seller with respect togoods which have been identified to a contract for sale aresubject to the buyer's rights to recover the goods under thisarticle (sections 400.2-502 and 400.2-716).

(2) A creditor of the seller may treat a sale or anidentification of goods to a contract for sale as void if asagainst him a retention of possession by the seller is fraudulentunder any rule of law of the state where the goods are situated,except that retention of possession in good faith and currentcourse of trade by a merchant-seller for a commerciallyreasonable time after a sale or identification is not fraudulent.

(3) Nothing in this article shall be deemed to impair therights of creditors of the seller

(a) under the provisions of the article on securedtransactions (article 9); or

(b) where identification to the contract or delivery is madenot in current course of trade but in satisfaction of or assecurity for a preexisting claim for money, security or the likeand is made under circumstances which under any rule of law ofthe state where the goods are situated would apart from thisarticle constitute the transaction a fraudulent transfer orvoidable preference.

(L. 1963 p. 503 § 2-402)
(1971) Subsection (1) of this section does not require a reversal of a holding that barrel staves sold by bankrupt to purchaser before filing of bankruptcy petition but left on bankrupt's premises to "cure" was not in constructive possession of the purchaser and the transaction was void as against the creditors of the bankrupt vendor. In re Gowen (C.A. Mo.), 451 F.2d 994.