Tex. Business & Commerce Code § 2.402
This is the official text of Tex. Business & Commerce Code § 2.402, part of Texas’s Business & Commerce Code — governs commercial transactions and general business practices.
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§ 2.402. RIGHTS OF SELLER'S CREDITORS AGAINST SOLD GOODS.
Official statutory text
(a) Except as provided in Subsections (b) and (c), 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 chapter (Sections 2.502 and 2.716).
(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 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.
(c) Nothing in this chapter shall be deemed to impair the rights of creditors of the seller
(1) under the provisions of the chapter on Secured Transactions (Chapter 9); 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 pre-existing 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 chapter constitute the transaction a fraudulent transfer or voidable preference.
(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 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.
(c) Nothing in this chapter shall be deemed to impair the rights of creditors of the seller
(1) under the provisions of the chapter on Secured Transactions (Chapter 9); 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 pre-existing 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 chapter constitute the transaction a fraudulent transfer or voidable preference.
Status: in_force · Read it on the official government site
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