12A:2-402 - Rights of seller's creditors against sold goods - New-jersey Statutes

State Codes and Statutes

Statutes > New-jersey > Title-12a > Section-12a-2 > 12a-2-402

12A:2-402. Rights of seller's creditors against sold goods
    (1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716).

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

    (3) Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller

     (a) under the provisions of the Chapter on Secured Transactions (Chapter 9); or

     (b) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this Chapter constitute the transaction a fraudulent transfer or voidable preference.

     L.1961, c. 120, s. 2-402.

State Codes and Statutes

Statutes > New-jersey > Title-12a > Section-12a-2 > 12a-2-402

12A:2-402. Rights of seller's creditors against sold goods
    (1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716).

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

    (3) Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller

     (a) under the provisions of the Chapter on Secured Transactions (Chapter 9); or

     (b) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this Chapter constitute the transaction a fraudulent transfer or voidable preference.

     L.1961, c. 120, s. 2-402.

State Codes and Statutes

Back To Homepage

State Codes and Statutes

Statutes > New-jersey > Title-12a > Section-12a-2 > 12a-2-402

12A:2-402. Rights of seller's creditors against sold goods
    (1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716).

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

    (3) Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller

     (a) under the provisions of the Chapter on Secured Transactions (Chapter 9); or

     (b) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this Chapter constitute the transaction a fraudulent transfer or voidable preference.

     L.1961, c. 120, s. 2-402.