8.2-702 - Seller's remedies on discovery of buyer's insolvency. - Virginia Statutes

§ 8.2-702. Seller's remedies on discovery of buyer's insolvency.

(1) Where the seller discovers the buyer to be insolvent he may refusedelivery except for cash including payment for all goods theretoforedelivered under the contract, and stop delivery under this title (§ 8.2-705).

(2) Where the seller discovers that the buyer has received goods on creditwhile insolvent he may reclaim the goods upon demand made within ten daysafter the receipt, but if misrepresentation of solvency has been made to theparticular seller in writing within three months before delivery the ten daylimitation does not apply. Except as provided in this subsection the sellermay not base a right to reclaim goods on the buyer's fraudulent or innocentmisrepresentation of solvency or of intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to therights of a buyer in ordinary course or other good faith purchaser or liencreditor under this title (§ 8.2-403). Successful reclamation of goodsexcludes all other remedies with respect to them.

(1964, c. 219.)