Rights of Seller's Creditors Against Sold Goods

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. Title, Creditors, and Good Faith Purchasers
  6. Rights of Seller's Creditors Against Sold Goods

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  1. Except as provided in subsections (2) and (3) of this Code section, rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this article (Code Sections 11-2-502 and 11-2-716).
  2. A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent.
  3. Nothing in this article shall be deemed to impair the rights of creditors of the seller:
  1. Under the provisions of the article on secured transactions (Article 9 of this title); or
  2. Where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security, or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this article constitute the transaction a fraudulent transfer or voidable preference.

(Code 1933, § 109A-2 - 402, enacted by Ga. L. 1962, p. 156, § 1.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 6 Am. Jur. 2d, Attachment and Garnishment, § 90. 15A Am. Jur. 2d, Commercial Code, § 11. 67 Am. Jur. 2d, Sales, §§ 462-464. 68A Am. Jur. 2d, Secured Transactions, § 13.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:356.

C.J.S.

- 37 C.J.S., Fraudulent Conveyances, § 212.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-402.

ALR.

- Validity as against third person of sale or pledge of goods, or receipts issued for goods, retained in warehouse on premises of seller or pledgor (field warehousing), 133 A.L.R. 209.


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