70A-2-702 - Seller's remedies on discovery of buyer's insolvency.
70A-2-702. Seller's remedies on discovery of buyer's insolvency.
(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except forcash including payment for all goods theretofore delivered under the contract, and stop deliveryunder this chapter (Section 70A-2-705).
(2) Where the seller discovers that the buyer has received goods on credit while insolventhe may reclaim the goods upon demand made within 10 days after the receipt, but ifmisrepresentation of solvency has been made to the particular seller in writing within threemonths before delivery the ten-day limitation does not apply. Except as provided in thissubsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocentmisrepresentation of solvency or of intent to pay.
(3) The seller's right to reclaim under Subsection (2) is subject to the rights of a buyer inordinary course or other good faith purchaser or lien creditor under this chapter (Section70A-2-403). Successful reclamation of goods excludes all other remedies with respect to them.
Enacted by Chapter 154, 1965 General Session