Court Opinions

State Laws

US Code

US Constitution

Texas Business & Commerce Code - Section 2.402. Rights Of Seller's Creditors Against Sold Goods

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 2.402. Rights Of Seller's Creditors Against Sold Goods

§ 2.402. RIGHTS OF SELLER'S CREDITORS AGAINST SOLD 
GOODS.  (a) Except as provided in Subsections (b) and (c), rights 
of unsecured creditors of the seller with respect to goods which 
have been identified to a contract for sale are subject to the 
buyer's rights to recover the goods under this chapter (Sections 
2.502 and 2.716).
	(b)  A creditor of the seller may treat a sale or an 
identification of goods to a contract for sale as void if as against 
him a retention of possession by the seller is fraudulent under any 
rule of law of the state where the goods are situated, except that 
retention of possession in good faith and current course of trade by 
a merchant-seller for a commercially reasonable time after a sale 
or identification is not fraudulent.
	(c)  Nothing in this chapter shall be deemed to impair the 
rights of creditors of the seller
		(1)  under the provisions of the chapter on Secured 
Transactions (Chapter 9);  or
		(2)  where identification to the contract or delivery 
is made not in current course of trade but in satisfaction of or as 
security for a pre-existing claim for money, security or the like 
and is made under circumstances which under any rule of law of the 
state where the goods are situated would apart from this chapter 
constitute the transaction a fraudulent transfer or voidable 
preference.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.           

Last modified: August 10, 2007