§ 2402. Department of Public Works- Director- Appointment
TITLE 5: UNIFORM COMMERCIAL CODE DIVISION 2: SALES § 2402. Rights of Seller’s Creditors Against Sold Goods. (1) Except as provided in subsections (2) and (3) of this section, rights of unsecured creditors of the seller with respect to goods which have been identi- fied to a contract for sale are subject to the buyer’s rights to recover the goods under this division (5 CMC §§ 2502 and 2716). (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 situ- ated, 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 division shall be deemed to impair the rights of creditors of the seller: (a) Under the provisions of the division on secured transactions (division 9 of this title [5 CMC § 9101 et seq.]); or (b) Where identification to the contract or delivery is made not in cur- rent 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 division constitute the transaction a fraudulent transfer or voidable preference. Source: PL 3-56, § 1 (§ 2402).
Source: CNMI Law Revision Commission