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84-2-402. Rights of seller's creditors against sold goods. (1) Except as provided in subsections (2) and (3), 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 article (sections 84-2-502 and 84-2-716).

(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 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.

(3) Nothing in this article shall be deemed to impair the rights of creditors of the seller

(a) under the provisions of the article on secured transactions (article 9); or

(b) where identification to the contract or delivery is made not in current 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 article constitute the transaction a fraudulent transfer or voidable preference.

History: L. 1965, ch. 564, ยง 64; January 1, 1966.


1. This section states the rights of the seller's unsecured creditors to get at sold goods. The rights of secured creditors are set out in Article 9; paragraph (3)(a) of this section specifically preserves those rights as against any provision of Article 2.

2. Subsection (1) subordinates the rights of the seller's unsecured creditors to the buyer's possessory rights in identified goods. Thus, if a buyer is able to recover the goods under sections 84-2-502 or 84-2-716, the seller's unsecured creditors cannot interfere. Subsections (2) and (3) make clear that the rule of subsection (1) is subject to non-Code law on the fraudulent retention of possession (see K.S.A. 33-103), fraudulent transfers, and voidable preferences.

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