Sec. 45.02.402. Rights of seller's creditors against sold goods.

227 words·~1 min read·/ak/title-45/chapter-2/45-02-402

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)Except as provided in

(b)and

(c)of this section, rights of unsecured creditors of the seller with respect to goods that have been identified to a contract for sale are subject to the buyer's rights to recover the goods under AS 45.02.502 and 45.02.716.

(b)A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are located, 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.

(c)Nothing in this chapter may be considered to impair the rights of creditors of the seller

(1)under the provisions of AS 45.29 ; or

(2)if identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security, or the like and is made under circumstances that under any rule of law of the state where the goods are located would, apart from this chapter, constitute the transaction of a fraudulent transfer or voidable preference.