70A-2-505 - Seller's shipment under reservation. - Utah Statutes

70A-2-505. Seller's shipment under reservation.
(1) Where the seller has identified goods to the contract by or before shipment:
(a) his procurement of a negotiable bill of lading to his own order or otherwise reservesin him a security interest in the goods. His procurement of the bill to the order of a financingagency or of the buyer indicates in addition only the seller's expectation of transferring thatinterest to the person named; and
(b) a nonnegotiable bill of lading to himself or his nominee reserves possession of thegoods as security but except in a case of conditional delivery as provided in Subsection70A-2-507(2), a nonnegotiable bill of lading naming the buyer as consignee reserves no securityinterest even though the seller retains possession or control of the bill of lading.
(2) When shipment by the seller with reservation of a security interest is in violation ofthe contract for sale, it constitutes an improper contract for transportation within the precedingsection but impairs neither the rights given to the buyer by shipment and identification of thegoods to the contract nor the seller's powers as a holder of a negotiable document of title.

Amended by Chapter 42, 2006 General Session