§ 25-2A-526. Lessor's stoppage of delivery in transit or otherwise. - North Carolina Statutes

§ 25‑2A‑526. Lessor's stoppage of delivery in transit or otherwise.

(1)        A lessor may stopdelivery of goods in the possession of a carrier or other bailee if the lessordiscovers the lessee to be insolvent and may stop delivery of carload,truckload, planeload, or larger shipments of express or freight if the lesseerepudiates or fails to make a payment due before delivery, whether for rent,security, or otherwise under the lease contract, or for any other reason thelessor has a right to withhold or take possession of the goods.

(2)        In pursuing itsremedies under subsection (1) of this section, the lessor may stop deliveryuntil

(a)        receipt of the goodsby the lessee;

(b)        acknowledgment tothe lessee by any bailee of the goods, except a carrier, that the bailee holdsthe goods for the lessee; or

(c)        such anacknowledgment to the lessee by a carrier via reshipment or as a warehouse.

(3)       (a)        Tostop delivery, a lessor shall so notify as to enable the bailee by reasonablediligence to prevent delivery of the goods.

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

(c)        A carrier who hasissued a nonnegotiable bill of lading is not obliged to obey a notification tostop received from a person other than the consignor. (1993, c. 463, s. 1; 1995, c.509, s. 23; 2006‑112, s. 40.)