12A:2-501 - Insurable interest in goods; manner of identification of goods - New Jersey Statutes

12A:2-501.  Insurable interest in goods;  manner of identification of goods    (1) The buyer obtains a special property and an insurable interest in goods  by identification of existing goods as goods to which the contract refers even  though the goods so identified are non-conforming and he has an option to  return or reject them.  Such identification can be made at any time and in any  manner explicitly agreed to by the parties.  In the absence of explicit  agreement identification occurs

     (a) when the contract is made if it is for the sale of goods already existing and identified;

     (b) if the contract is for the sale of future goods other than those described in paragraph (c), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

     (c) when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within twelve months after contracting or for the sale of crops to be harvested  within twelve months or the next normal harvest season after contracting  whichever is longer.

    (2) The seller retains an insurable interest in goods so long as title to or  any security interest in the goods remains in him and where the identification  is by the seller alone he may until default or insolvency or notification to  the buyer that the identification is final substitute other goods for those  identified.

    (3) Nothing in this section impairs any insurable interest recognized under  any other statute or rule of law.

     L.1961, c. 120, s. 2-501.