12A:2-402 - Rights of seller's creditors against sold goods - New Jersey Statutes

12A:2-402.  Rights of seller's creditors against sold goods
    (1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this Chapter (12A:2-502 and 2-716).

    (2) A creditor of the seller may treat a sale or an identification of goods  to a contract for sale as void if as against him a retention of possession by  the seller is fraudulent under any rule of law of the state where the goods are  situated, except that retention of possession in good faith and current course  of trade by a merchant-seller for a commercially reasonable time after a sale  or identification is not fraudulent.

    (3) Nothing in this Chapter shall be deemed to impair the rights of creditors of the seller

     (a) under the provisions of the Chapter on Secured Transactions (Chapter 9);  or

     (b) where identification to the contract or delivery is made not in current  course of trade but in satisfaction of or as security for a pre-existing claim  for money, security or the like and is made under circumstances which under any  rule of law of the state where the goods are situated would apart from this  Chapter constitute the transaction a fraudulent transfer or voidable  preference.

     L.1961, c. 120, s. 2-402.