400.2-505. Seller's shipment under reservation. - Missouri Statutes

Seller's shipment under reservation.

400.2-505. (1) Where the seller has identified goods to thecontract by or before shipment:

(a) his procurement of a negotiable bill of lading to hisown order or otherwise reserves in him a security interest in thegoods. His procurement of the bill to the order of a financingagency or of the buyer indicates in addition only the seller'sexpectation of transferring that interest to the person named.

(b) a nonnegotiable bill of lading to himself or his nomineereserves possession of the goods as security but except in a caseof conditional delivery (subsection (2) of section 400.2-507) anonnegotiable bill of lading naming the buyer as consigneereserves no security interest even though the seller retainspossession of the bill of lading.

(2) When shipment by the seller with reservation of asecurity interest is in violation of the contract for sale itconstitutes an improper contract for transportation withinsection 400.2-504 but impairs neither the rights given to thebuyer by shipment and identification of the goods to the contractnor the seller's powers as a holder of a negotiable document.

(L. 1963 p. 503 § 2-505)