California Commercial Code

§ 2505

COM § 2505 Effective Jan 1, 2007Div. 2 · Ch. 5

Statute text

(1)Where the seller has identified goods to the contract by or before shipment:

(a)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.

(b)A nonnegotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in a case of conditional delivery (subdivision (2) of Section 2507) 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.

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Legislative history

Amended by Stats. 2006, Ch. 254, Sec. 39. Effective January 1, 2007.