25-2-702. Seller's remedies on discovery of buyer's insolvency.
(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this article (G.S. 25-2-705).
(2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three months before delivery the ten-day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation 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 in ordinary course or other good faith purchaser under this article (G.S. 25-2-403). Successful reclamation of goods excludes all other remedies with respect to them. (1965, c. 700, s. 1; 1967, c. 562, s. 1.)
Structure North Carolina General Statutes
North Carolina General Statutes
Chapter 25 - Uniform Commercial Code
§ 25-2-102 - Scope; certain security and other transactions excluded from this article.
§ 25-2-103 - Definitions and index of definitions.
§ 25-2-104 - Definitions"Merchant"; "between merchants"; "financing agency."
§ 25-2-105 - Definitions"Transferability"; "goods"; "future" goods; "lot"; "commercial unit."
§ 25-2-107 - Goods to be severed from realty; recording.
§ 25-2-201 - Formal requirements; statute of frauds.
§ 25-2-202 - Final written expression; parol or extrinsic evidence.
§ 25-2-203 - Seals inoperative.
§ 25-2-204 - Formation in general.
§ 25-2-206 - Offer and acceptance in formation of contract.
§ 25-2-207 - Additional terms in acceptance or confirmation.
§ 25-2-209 - Modification, rescission and waiver.
§ 25-2-210 - Delegation of performance; assignment of rights.
§ 25-2-301 - General obligations of parties.
§ 25-2-302 - Unconscionable contract or clause.
§ 25-2-303 - Allocation or division of risks.
§ 25-2-304 - Price payable in money, goods, realty, or otherwise.
§ 25-2-306 - Output, requirements and exclusive dealings.
§ 25-2-307 - Delivery in single lot or several lots.
§ 25-2-308 - Absence of specified place for delivery.
§ 25-2-309 - Absence of specific time provisions; notice of termination.
§ 25-2-310 - Open time for payment or running of credit; authority to ship under reservation.
§ 25-2-311 - Options and cooperation respecting performance.
§ 25-2-312 - Warranty of title and against infringement; buyer's obligation against infringement.
§ 25-2-313 - Express warranties by affirmation, promise, description, sample.
§ 25-2-314 - Implied warrantyMerchantability; usage of trade.
§ 25-2-315 - Implied warrantyFitness for particular purpose.
§ 25-2-316 - Exclusion or modification of warranties.
§ 25-2-317 - Cumulation and conflict of warranties express or implied.
§ 25-2-318 - Third party beneficiaries of warranties express or implied.
§ 25-2-319 - F.O.Band F.A.Sterms.
§ 25-2-320 - C.I.Fand C& Fterms.
§ 25-2-322 - Delivery "ex-ship."
§ 25-2-323 - Form of bill of lading required in overseas shipment; "overseas."
§ 25-2-324 - "No arrival, no sale" term.
§ 25-2-325 - "Letter of credit" term; "confirmed credit."
§ 25-2-326 - Sale on approval and sale or return; rights of creditors.
§ 25-2-327 - Special incidents of sale on approval and sale or return.
§ 25-2-401 - Passing of title; reservation for security; limited application of this section.
§ 25-2-402 - Rights of seller's creditors against sold goods.
§ 25-2-403 - Power to transfer; good faith purchase of goods; "entrusting."
§ 25-2-501 - Insurable interest in goods; manner of identification of goods.
§ 25-2-502 - Buyer's right to goods on seller's repudiation, failure to deliver, or insolvency.
§ 25-2-503 - Manner of seller's tender of delivery.
§ 25-2-504 - Shipment by seller.
§ 25-2-505 - Seller's shipment under reservation.
§ 25-2-506 - Rights of financing agency.
§ 25-2-507 - Effect of seller's tender; delivery on condition.
§ 25-2-508 - Cure by seller of improper tender or delivery; replacement.
§ 25-2-509 - Risk of loss in the absence of breach.
§ 25-2-510 - Effect of breach on risk of loss.
§ 25-2-511 - Tender of payment by buyer; payment by check.
§ 25-2-512 - Payment by buyer before inspection.
§ 25-2-513 - Buyer's right to inspection of goods.
§ 25-2-514 - When documents deliverable on acceptance; when on payment.
§ 25-2-515 - Preserving evidence of goods in dispute.
§ 25-2-601 - Buyer's rights on improper delivery.
§ 25-2-602 - Manner and effect of rightful rejection.
§ 25-2-603 - Merchant buyer's duties as to rightfully rejected goods.
§ 25-2-604 - Buyer's options as to salvage of rightfully rejected goods.
§ 25-2-605 - Waiver of buyer's objections by failure to particularize.
§ 25-2-606 - What constitutes acceptance of goods.
§ 25-2-608 - Revocation of acceptance in whole or in part.
§ 25-2-609 - Right to adequate assurance of performance.
§ 25-2-610 - Anticipatory repudiation.
§ 25-2-611 - Retraction of anticipatory repudiation.
§ 25-2-612 - "Installment contract"; breach.
§ 25-2-613 - Casualty to identified goods.
§ 25-2-614 - Substituted performance.
§ 25-2-615 - Excuse by failure of presupposed conditions.
§ 25-2-616 - Procedure on notice claiming excuse.
§ 25-2-701 - Remedies for breach of collateral contracts not impaired.
§ 25-2-702 - Seller's remedies on discovery of buyer's insolvency.
§ 25-2-703 - Seller's remedies in general.
§ 25-2-705 - Seller's stoppage of delivery in transit or otherwise.
§ 25-2-706 - Seller's resale including contract for resale.
§ 25-2-707 - "Person in the position of a seller."
§ 25-2-708 - Seller's damages for nonacceptance or repudiation.
§ 25-2-709 - Action for the price.
§ 25-2-710 - Seller's incidental damages.
§ 25-2-711 - Buyer's remedies in general; buyer's security interest in rejected goods.
§ 25-2-712 - "Cover"; buyer's procurement of substitute goods.
§ 25-2-713 - Buyer's damages for nondelivery or repudiation.
§ 25-2-714 - Buyer's damages for breach in regard to accepted goods.
§ 25-2-715 - Buyer's incidental and consequential damages.
§ 25-2-716 - Buyer's right to specific performance or replevin.
§ 25-2-717 - Deduction of damages from the price.
§ 25-2-718 - Liquidation or limitation of damages; deposits.
§ 25-2-719 - Contractual modification or limitation of remedy.
§ 25-2-720 - Effect of "cancellation" or "rescission" on claims for antecedent breach.
§ 25-2-721 - Remedies for fraud.
§ 25-2-722 - Who can sue third parties for injury to goods.
§ 25-2-723 - Proof of market price; time and place.