State Codes and Statutes
Statutes > North-carolina > Chapter_25 > GS_25-2-402§25‑2‑402. Rights of seller's creditors against sold goods.
(1) Except as providedin subsections (2) and (3), rights of unsecured creditors of the seller withrespect to goods which have been identified to a contract for sale are subjectto the buyer's rights to recover the goods under this article (G.S. 25‑2‑502and 25‑2‑716).
(2) A creditor of theseller may treat a sale or an identification of goods to a contract for sale asvoid if as against him a retention of possession by the seller is fraudulent underany rule of law of the state where the goods are situated, except thatretention of possession in good faith and current course of trade by a merchant‑sellerfor a commercially reasonable time after a sale or identification is notfraudulent.
(3) Nothing in thisarticle shall be deemed to impair the rights of creditors of the seller
(a) under the provisionsof the article on secured transactions (article 9); or
(b) where identificationto the contract or delivery is made not in current course of trade but insatisfaction of or as security for a pre‑existing claim for money,security or the like and is made under circumstances which under any rule oflaw of the state where the goods are situated would apart from this articleconstitute the transaction a fraudulent transfer or voidable preference. (1965,c. 700, s. 1.)
