N.Y. Uniform Commercial Code Law § 2-501: Insurable Interest in Goods; Manner of Identification of Goods

Section 2--501. Insurable Interest in Goods; Manner of Identification of

Goods.

(1) The buyer obtains a special property and an insurable interest in

goods by identification of existing goods as goods to which the contract

refers even though the goods so identified are non-conforming and he has

an option to return or reject them. Such identification can be made at

any time and in any manner explicitly agreed to by the parties. In the

absence of explicit agreement identification occurs

(a) when the contract is made if it is for the sale of goods

already existing and identified;

(b) if the contract is for the sale of future goods other than

those described in paragraph (c), when goods are shipped,

marked or otherwise designated by the seller as goods to

which the contract refers;

(c) when the crops are planted or otherwise become growing crops

or the young are conceived if the contract is for the sale of

unborn young to be born within twelve months after

contracting or for the sale of crops to be harvested within

twelve months or the next normal harvest season after

contracting whichever is longer.

(2) The seller retains an insurable interest in goods so long as title

to or any security interest in the goods remains in him and where the

identification is by the seller alone he may until default or insolvency

or notification to the buyer that the identification is final substitute

other goods for those identified.

(3) Nothing in this section impairs any insurable interest recognized

under any other statute or rule of law.