8.2-505 - Seller's shipment under reservation. - Virginia Statutes

§ 8.2-505. Seller's shipment under reservation.

(1) Where the seller has identified goods to the contract by or beforeshipment:

(a) his procurement of a negotiable bill of lading to his own order orotherwise reserves in him a security interest in the goods. His procurementof the bill to the order of a financing agency or of the buyer indicates inaddition only the seller's expectation of transferring that interest to theperson named.

(b) a nonnegotiable bill of lading to himself or his nominee reservespossession of the goods as security but except in a case of conditionaldelivery (subsection (2) of § 8.2-507) a nonnegotiable bill of lading namingthe buyer as consignee reserves no security interest even though the sellerretains possession or control of the bill of lading.

(2) When shipment by the seller with reservation of a security interest is inviolation of the contract for sale it constitutes an improper contract fortransportation within the preceding section [§ 8.2-504] but impairs neitherthe rights given to the buyer by shipment and identification of the goods tothe contract nor the seller's powers as a holder of a negotiable document oftitle.

(1964, c. 219; 2004, c. 200.)