400.2A-526. Lessor's stoppage of delivery in transit or otherwise. - Missouri Statutes

Lessor's stoppage of delivery in transit or otherwise.

400.2A-526. (1) A lessor may stop delivery of goods in thepossession of a carrier or other bailee if the lessor discoversthe lessee to be insolvent and may stop delivery of carload,truckload, planeload, or larger shipments of express or freightif the lessee repudiates or fails to make a payment due beforedelivery, whether for rent, security or otherwise under the leasecontract, or for any other reason the lessor has a right towithhold or take possession of the goods.

(2) In pursuing its remedies under subsection (1), thelessor may stop delivery until

(a) receipt of the goods by the lessee;

(b) acknowledgment to the lessee by any bailee of thegoods, except a carrier, that the bailee holds the goods for thelessee; or

(c) such an acknowledgment to the lessee by a carrier viareshipment or as warehouseman.

(3) (a) To stop delivery, a lessor shall so notify as toenable the bailee by reasonable diligence to prevent delivery ofthe goods.

(b) After notification, the bailee shall hold and deliverthe goods according to the directions of the lessor, but thelessor is liable to the bailee for any ensuing charges ordamages.

(c) A carrier who has issued a nonnegotiable bill of ladingis not obliged to obey a notification to stop received from aperson other than the consignor.

(L. 1992 S.B. 448)