Rhode Island General Laws 6A-2-505. Seller’s shipment under reservation
(1) Where the seller has identified goods to the contract by or before shipment:
(a) The seller’s procurement of a negotiable bill of lading to his or her own order or otherwise reserves in him or her a security interest in the goods. The seller’s 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.
(b) A nonnegotiable bill of lading to the seller or his or her nominee reserves possession of the goods as security but, except in a case of conditional delivery (§ 6A-2-507(2)), a nonnegotiable 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.
Terms Used In Rhode Island General Laws 6A-2-505
- Buyer: means a person who buys or contracts to buy goods. See Rhode Island General Laws 6A-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 Rhode Island General Laws 6A-2-106
- person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
- Seller: means a person who sells or contracts to sell goods. See Rhode Island General Laws 6A-2-103
(2) 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.
History of Section.
P.L. 1960, ch. 147, § 1; P.L. 2006, ch. 112, § 2; P.L. 2006, ch. 135, § 2; P.L. 2021, ch. 381, § 2, effective July 13, 2021; P.L. 2021, ch. 382, § 2, effective July 13, 2021.