Kentucky Statutes 355.2-402 – Rights of seller’s creditors against sold goods
Current as of: 2024 | Check for updates
|
Other versions
(1) Except as provided in subsections (2) and (3), 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 article (KRS 355.2-502 and 355.2-716).
(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 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 article constitute the transaction a fraudulent transfer or voidable preference.
Effective: July 1, 1960
History: Created 1958 Ky. Acts ch. 77, sec. 2-402, effective July 1, 1960.
(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.
Terms Used In Kentucky Statutes 355.2-402
- Buyer: means a person who buys or contracts to buy goods. See Kentucky Statutes 355.2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Kentucky Statutes 355.2-106
- Seller: means a person who sells or contracts to sell goods. See Kentucky Statutes 355.2-103
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
(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 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 article constitute the transaction a fraudulent transfer or voidable preference.
Effective: July 1, 1960
History: Created 1958 Ky. Acts ch. 77, sec. 2-402, effective July 1, 1960.