§ 6A-2.1-526 - Lessor's stoppage of delivery in transit or otherwise. - Rhode Island Statutes

SECTION 6A-2.1-526

   § 6A-2.1-526  Lessor's stoppage of deliveryin transit or otherwise. – (1) A lessor may stop delivery of goods in the possession of a carrier or otherbailee if the lessor discovers the lessee to be insolvent and may stop deliveryof carload, truckload, planeload, or larger shipments of express or freight ifthe lessee repudiates or fails to make a payment due before delivery, whetherfor rent, security, or otherwise under the lease contract, or for any otherreason the lessor has a right to withhold or take possession of the goods.

   (2) In pursuing its remedies under subsection (1), the lessormay stop delivery until:

   (a) Receipt of the goods by the lessee;

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

   (c) Such an acknowledgment to the lessee by a carrier viareshipment or as warehouse.

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

   (b) After notification, the bailee shall hold and deliver thegoods according to the directions of the lessor, but the lessor is liable tothe bailee for any ensuing charges or damages.

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