N.Y. Uniform Commercial Code Law § 2-702: Seller's Remedies on Discovery of Buyer's Insolvency

Section 2--702. Seller's Remedies on Discovery of Buyer's Insolvency.

(1) Where the seller discovers the buyer to be insolvent he may refuse

delivery except for cash including payment for all goods theretofore

delivered under the contract, and stop delivery under this Article

(Section 2--705).

(2) Where the seller discovers that the buyer has received goods on

credit while insolvent he may reclaim the goods upon demand made within

ten days after the receipt, but if misrepresentation of solvency has

been made to the particular seller in writing within three months before

delivery the ten day limitation does not apply. Except as provided in

this subsection the seller may not base a right to reclaim goods on the

buyer's fraudulent or innocent misrepresentation of solvency or of

intent to pay.

(3) The seller's right to reclaim under subsection (2) is subject to

the rights of a buyer in ordinary course or other good faith purchaser

under this Article (Section 2--403). Successful reclamation of goods

excludes all other remedies with respect to them.