Printable Format33-103. Sale of personal property without change of possession; exceptions. Except as otherwise provided in the uniform commercial code, every sale or conveyance of personal property unaccompanied by an actual and continued change of possession shall be deemed to be void as against purchasers without notice and existing or subsequent creditors, until it is shown that such sale was made in good faith and upon sufficient consideration. This section shall not interfere with the provisions of law relating to security agreements.
History: G.S. 1868, ch. 43, § 3; R.S. 1923, 33-103; L. 1965, ch. 564, § 414; January 1, 1966.
Law Review and Bar Journal References:
Fraudulent conveyances, Lawrence E. Christenson, 8 J.B.A.K. 360, 364 (1940); F. J. Moreau, 11 J.B.A.K. 205, 208, 209 (1943).
Creditor's remedies under civil procedure code in case of fraudulent conveyance, Charles L. Frickey, 17 K.L.R. 501 (1969).
"Professional Liability Insurance: Implication of Termination," Wayne T. Stratton, 77 J.K.M.S. 255, 260(1976).
CASE ANNOTATIONS
1. Claimant against attachment must show good faith and sufficient consideration. Tullis v. McCall, 2 K.A. 545, 43 P. 980.
2. Intent of parties controls. Kneeland v. Renner, 2 K.A. 451, 43 P. 95.
3. Subsequent purchaser cannot avoid sale with unchanged possession. Wolfley v. Rising, 8 K. 297.
4. Good faith and sufficient consideration are essential. Phillips v. Reitz, 16 K. 396.
5. Continuous possession by vendor is evidence of invalidity of sale. Phillips v. Reitz, 16 K. 396.
6. Continuous possession by vendor raises presumption of fraud. Phillips v. Reitz, 16 K. 396.
7. Vendor retaining possession must explain it. Phillips v. Reitz, 16 K. 396; K. P. Rly. Co. v. Couse, 17 K. 571.
8. Vendee charged with notice by suspicious circumstances. Phillips v. Reitz, 16 K. 396.
9. Purchaser knowing fraud of vendor is not bona fide purchaser. Phillips v. Reitz, 16 K. 396.
10. Good faith controls validity of mortgage of goods. Frankhouser v. Ellet, 22 K. 127, 144. Limited: Richardson v. Jones, 56 K. 501, 504, 43 P. 1127.
11. Retained possession is not per se or prima facie fraudulent. Frankhouser v. Ellet, 22 K. 127, 144. Limited: Richardson v. Jones, 56 K. 501, 504, 43 P. 1127.
12. Intent of parties controls, although no actual delivery of growing crops. Howell v. Pugh, 27 K. 702.
13. Burden of proving bona fides rests on parties to transfer. Roberts v. Radcliff, Sheriff, 35 K. 502, 11 P. 406.
14. Provisions of chattel mortgage considered and held not void. Sedgwick City Bank v. Mercantile Co., 45 K. 346, 25 P. 888.
15. Chattel mortgage held void as matter of law. Implement Co. v. Schultz, 45 K. 52, 25 P. 625.
16. Relationship of parties considered. Gilmore v. Swisher, 59 K. 172, 52 P. 426.
17. Possession by prior mortgagee for second mortgagee considered. Moffatt v. Beeler, 91 K. 209, 212, 137 P. 963.
18. Vendee's employment of vendor to operate personal property purchased not illegal. Robertson v. Andrus, 125 K. 730, 266 P. 53.
19. Assignment of note valid where creditor bank prevents change of possession. Raines v. Hanzlik, 130 K. 182, 184, 285 P. 637.