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§12A-2-702.
§12A-2-702.
(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
(Section 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 (10) days after the receipt, but if misrepresentation of
solvency has been made to the particular seller in writing within
three (3) 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 (Section 2-403). Successful reclamation of goods
excludes all other remedies with respect to them.
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