8.6A-106 - A-106. Schedule of distribution.
§ 8.6A-106. Schedule of distribution.
(1) The seller and buyer shall agree on how the net contract price is to bedistributed and set forth their agreement in a written schedule ofdistribution.
(2) The schedule of distribution may provide for distribution to any personat any time, including distribution of the entire net contract price to theseller.
(3) The buyer's undertakings in the schedule of distribution run only to theseller. However, a buyer who fails to distribute the net contract price inaccordance with the buyer's undertakings in the schedule of distribution isliable to a creditor only as provided in § 8.6A-107(1).
(4) If the buyer undertakes in the schedule of distribution to distribute anypart of the net contract price to a person other than the seller, and, afterthe buyer has given notice in accordance with § 8.6A-105, some or all of theanticipated net contract price is or becomes unavailable for distribution asa consequence of the buyer's or seller's having complied with an order ofcourt, legal process, statute, or rule of law, the buyer is excused from anyobligation arising under this title or under any contract with the seller todistribute the net contract price in accordance with the buyer's undertakingsin the schedule if the buyer:
(a) Distributes the net contract price remaining available in accordance withany priorities for payment stated in the schedule of distribution and, to theextent that the price is insufficient to pay all the debts having a givenpriority, distributes the price pro rata among those debts shown in theschedule as having the same priority;
(b) Distributes the net contract price remaining available in accordance withan order of court;
(c) Commences a proceeding for interpleader in a court of competentjurisdiction and is discharged from the proceeding; or
(d) Reaches a new agreement with the seller for the distribution of the netcontract price remaining available, sets forth the new agreement in anamended schedule of distribution, gives notice of the amended schedule, anddistributes the net contract price remaining available in accordance with thebuyer's undertakings in the amended schedule.
(5) The notice under subsection (4) (d) must identify the buyer and theseller, state the filing number, if any, of the original notice, set forththe amended schedule, and be given in accordance with subsection (1) or (2)of § 8.6A-105, whichever is applicable, at least fourteen days before thebuyer distributes any part of the net contract price remaining available.
(6) If the seller undertakes in the schedule of distribution to distributeany part of the net contract price, and, after the buyer has given notice inaccordance with § 8.6A-105, some or all of the anticipated net contract priceis or becomes unavailable for distribution as a consequence of the buyer's orseller's having complied with an order of court, legal process, statute, orrule of law, the seller and any person in control of the seller are excusedfrom any obligation arising under this title or under any agreement with thebuyer to distribute the net contract price in accordance with the seller'sundertakings in the schedule if the seller:
(a) Distributes the net contract price remaining available in accordance withany priorities for payment stated in the schedule of distribution and, to theextent that the price is insufficient to pay all the debts having a givenpriority, distributes the price pro rata among those debts shown in theschedule as having the same priority;
(b) Distributes the net contract price remaining available in accordance withan order of court;
(c) Commences a proceeding for interpleader in a court of competentjurisdiction and is discharged from the proceeding; or
(d) Prepares a written amended schedule of distribution of the net contractprice remaining available for distribution, gives notice of the amendedschedule, and distributes the net contract price remaining available inaccordance with the amended schedule.
(7) The notice under subsection (6) (d) must identify the buyer and theseller, state the filing number, if any, of the original notice, set forththe amended schedule, and be given in accordance with subsection (1) or (2)of § 8.6A-105, whichever is applicable, at least fourteen days before theseller distributes any part of the net contract price remaining available.
(1997, c. 121.)