Texas Business & Commerce Code - Section 2.505. Seller's Shipment Under Reservation
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Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 2.505. Seller's Shipment Under Reservation
§ 2.505. SELLER'S SHIPMENT UNDER RESERVATION. (a) Where
the seller has identified goods to the contract by or before
shipment:
(1) his procurement of a negotiable bill of lading to
his own order or otherwise reserves in him a security interest in
the goods. His procurement of the bill to the order of a financing
agency or of the buyer indicates in addition only the seller's
expectation of transferring that interest to the person named.
(2) a non-negotiable bill of lading to himself or his
nominee reserves possession of the goods as security but except in a
case of conditional delivery (Subsection (b) of Section 2.507) a
non-negotiable bill of lading naming the buyer as consignee
reserves no security interest even though the seller retains
possession or control of the bill of lading.
(b) When shipment by the seller with reservation of a
security interest is in violation of the contract for sale it
constitutes an improper contract for transportation within the
preceding section but impairs neither the rights given to the buyer
by shipment and identification of the goods to the contract nor the
seller's powers as a holder of a negotiable document of title.
Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.
Amended by Acts 2005, 79th Leg., ch. 122, § 8, eff. Sept. 1,
2005.
Section: 2.401 2.402 2.403 2.501 2.502 2.503 2.504 2.505 2.506 2.507 2.508 2.509 2.510 2.511 2.512
Last modified: August 10, 2007
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