State Codes and Statutes
Statutes > Rhode-island > Title-6a > Chapter-6a-2 > 6a-2-505SECTION 6A-2-505
§ 6A-2-505 Seller's shipment underreservation. – (1) Where the seller has identified goods to the contract by or before shipment:
(a) The seller's procurement of a negotiable bill of ladingto his or her own order or otherwise reserves in him or her a security interestin the goods. The seller's procurement of the bill to the order of a financingagency or of the buyer indicates in addition only the seller's expectation oftransferring that interest to the person named.
(b) A nonnegotiable bill of lading to the seller or his orher nominee reserves possession of the goods as security but, except in a caseof conditional delivery (§ 6A-2-507(2)), a nonnegotiable bill of ladingnaming the buyer as consignee reserves no security interest even though theseller retains possession or control of the bill of lading.
(2) When shipment by the seller with reservation of asecurity interest is in violation of the contract for sale it constitutes animproper contract for transportation within the preceding section, but impairsneither the rights given to the buyer by shipment and identification of thegoods to the contract nor the seller's powers as a holder of a negotiabledocument.
