2-702 - Seller's Remedies on Discovery of Buyer's Insolvency. - New-york Statutes

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Statutes > New-york > Ucc > Article-2 > Part-7 > 2-702

Section 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 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  under  this  Article  (Section  2--403). Successful reclamation of goods  excludes all other remedies with respect to them.

State Codes and Statutes

Statutes > New-york > Ucc > Article-2 > Part-7 > 2-702

Section 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 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  under  this  Article  (Section  2--403). Successful reclamation of goods  excludes all other remedies with respect to them.

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State Codes and Statutes

Statutes > New-york > Ucc > Article-2 > Part-7 > 2-702

Section 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 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  under  this  Article  (Section  2--403). Successful reclamation of goods  excludes all other remedies with respect to them.