Section 400.2-402

Title XXVI TRADE AND COMMERCE

Chapter 400

Effective - 28 Aug 1963   

  400.2-402.  Rights of seller's creditors against sold goods. — (1)  Except as provided in subsections (2) and (3), right 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 article (sections 400.2-502 and 400.2-716).

  (2)  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.

  (3)  Nothing in this article shall be deemed to impair the rights of creditors of the seller

  (a)  under the provisions of the article on secured transactions (article 9); or

  (b)  where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a preexisting 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 article constitute the transaction a fraudulent transfer or voidable preference.

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(L. 1963 p. 503 § 2-402)

(1971) Subsection (1) of this section does not require a reversal of a holding that barrel staves sold by bankrupt to purchaser before filing of bankruptcy petition but left on bankrupt's premises to "cure" was not in constructive possession of the purchaser and the transaction was void as against the creditors of the bankrupt vendor. In re Gowen (C.A. Mo.), 451 F.2d 994.