8.2A-526 - A-526. Lessor's stoppage of delivery in transit or otherwise. - Virginia Statutes

§ 8.2A-526. Lessor's stoppage of delivery in transit or otherwise.

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

(2) In pursuing its remedies under subsection (1) of this section, 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 acarrier, that the bailee holds the goods for the lessee; or

(c) Such an acknowledgment to the lessee by a carrier via reshipment or as awarehouse.

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

(b) After notification, the bailee shall hold and deliver the goods accordingto the directions of the lessor, but the lessor is liable to the bailee forany ensuing charges or damages.

(c) A carrier who has issued a nonnegotiable bill of lading is not obliged toobey a notification to stop received from a person other than the consignor.

(1991, c. 536; 2004, c. 200.)