New York Uniform Commercial Code Law Section 2-A-526 - Lessor's Stoppage of Delivery in Transit or Otherwise.

Section 2-A-526. Lessor's Stoppage of Delivery in Transit or Otherwise.
(1) A lessor may stop delivery of goods in the possession of a carrier
  or  other  bailee if the lessor discovers the lessee to be insolvent and
  may stop delivery of carload, truckload, planeload, or larger  shipments
  of  express  or  freight  if  the  lessee  repudiates or fails to make a
  payment due before delivery, whether for  rent,  security  or  otherwise
  under the lease contract, or for any other reason the lessor has a right
  to withhold or take possession of the goods.
(2) In pursuing its remedies under subsection (1), the lessor may stop
  delivery until:
     (a) receipt of the goods by the lessee;
     (b) acknowledgment  to  the  lessee  by  any bailee of the goods,
         except a carrier, that the bailee holds  the  goods  for  the
         lessee; or
     (c) such  an  acknowledgment  to  the  lessee  by  a  carrier via
         reshipment or as a warehouse.
(3) (a) To stop delivery, a lessor shall so notify as  to  enable  the
  bailee by reasonable diligence to prevent delivery of the goods.
     (b) After  notification,  the  bailee  shall hold and deliver the
         goods according to the directions  of  the  lessor,  but  the
         lessor  is  liable  to  the bailee for any ensuing charges or
         damages.
     (c) A carrier who has issued a nonnegotiable bill  of  lading  is
         not  obliged  to  obey a notification to stop received from a
         person other than the consignor.

Last modified: February 3, 2019