70A-2-402 - Rights of seller's creditors against sold goods.
70A-2-402. Rights of seller's creditors against sold goods.
(1) Except as provided in Subsections (2) and (3), rights of unsecured creditors of theseller with respect to goods which have been identified to a contract for sale are subject to thebuyer's rights to recover the goods under this chapter (Sections 70A-2-502 and 70A-2-716).
(2) A creditor of the seller may treat a sale or an identification of goods to a contract forsale as void if as against him a retention of possession by the seller is fraudulent under any rule oflaw of the state where the goods are situated, except that retention of possession in good faith andcurrent course of trade by a merchant-seller for a commercially reasonable time after a sale oridentification is not fraudulent.
(3) Nothing in this chapter shall be deemed to impair the rights of creditors of the seller
(a) under the provisions of the chapter on Secured Transactions (Chapter 9); or
(b) where identification to the contract or delivery is made not in current course of tradebut in satisfaction of or as security for a preexisting claim for money, security or the like and ismade under circumstances which under any rule of law of the state where the goods are situatedwould apart from this chapter constitute the transaction a fraudulent transfer or voidablepreference.
Enacted by Chapter 154, 1965 General Session