N.Y. Uniform Commercial Code Law § 2-402: Rights of Seller's Creditors Against Sold Goods

Section 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 2--502 and 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 as 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 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 Article constitute the transaction a fraudulent

transfer or voidable preference.