§ 25-2-505. Seller's shipment under reservation. - North Carolina Statutes

§ 25‑2‑505. Seller's shipment under reservation.

(1)        Where the sellerhas identified goods to the contract by or before shipment:

(a)        his procurement of anegotiable bill of lading to his own order or otherwise reserves in him asecurity interest in the goods. His procurement of the bill to the order of afinancing agency or of the buyer indicates in addition only the seller'sexpectation of transferring that interest to the person named.

(b)        a nonnegotiable billof lading to himself or his nominee reserves possession of the goods assecurity but except in a case of conditional delivery (subsection (2) of G.S.25‑2‑507) a nonnegotiable bill of lading naming the buyer asconsignee reserves no security interest even though the seller retainspossession or control of the bill of lading.

(2)        When shipment bythe seller with reservation of a security interest is in violation of thecontract for sale it constitutes an improper contract for transportation withinG.S. 25‑2‑504 but impairs neither the rights given to the buyer byshipment and identification of the goods to the contract nor the seller'spowers as a holder of a negotiable document of title. (1965, c. 700, s. 1; 2006‑112,s. 33.)