Page:United States Statutes at Large Volume 77.djvu/689

 77 STAT. ]

PUBLIC LAW 88-243~DEC. 30, 1963

(b) a non-negotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection (2) of section 28:2—507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession of the bill of lading. (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 liolder of a negotiable document. § 28:2—506. Rights of financing agency (1) A financing agency by paying or purchasing for value a draft which relates to a shipment of ^oods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer. (2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the Iniyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular on its face. § 28:2—507. Effect of seller's tender; delivery on condition (1) Tender of delivery is a condition to the buyer's duty to accept the goods and, unless otherwise agreed, to his duty to pay for them. Tender entitles the seller to acceptance of the goods and to payment according to the contract. (2) Where payment is due and demanded on the delivery to the buyer of goods or documents of title, his right as against the seller to retain or dispose of them is conditional upon his making the payment due. §28:2—508. Cure by seller of improper tender or delivery; replacement (1) Where any tender or delivery by the seller is rejected because non-conforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of his intention to cure and may then within the contract time make a conforming delivery. (2) Where the buyer rejects a non-conforming tender which the seller had reasonable grounds to believe would be acceptable with or without money allowance the seller may if he seasonably notifies the buyer have a further reasonable time to substitute a conforming tender. § 28:2—509« Risk of loss in the absence of breach • (1) Where the contract recpiires or authorizes the seller to ship the goods by carrier (a) if it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (section 28:2—505); but (b) if it does require him to deliver them at a particular destination and the goods are there duly tendered while in the possession of ih^. carrier, the risk of loss passes to the buyer when the goods are there duly so tendered as to enable the buyer to take delivery. 93-025 0-64-44

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