{"data":{"id":"us-ky/krs-355.2-505","jurisdiction":"us-ky","citation":"KRS 355.2-505","heading":"Seller's shipment under reservation.","body":"(1) Where the seller has identified goods to the contract by or before shipment:\n(a) His procurement of a negotiable bill of lading to his own order or otherwise\nreserves in him a security interest in the goods. His procurement of the bill to\nthe order of a f inancing agency or of the buyer indicates in addition only the\nseller's expectation of transferring that interest to the person named.\n(b) A nonnegotiable bill of lading to himself or his nominee reserves possession\nof the goods as security but except in a case of conditional delivery\n(subsection (2) of KRS 355.2 -507) a nonnegotiable bill of lading naming the\nbuyer as consignee reserves no security interest even though the seller retains\npossession or control of the bill of lading.\n(2) When shipment by the seller with reservation of a security interest is in violation of\nthe contract for sale it constitutes an improper contract for transportation within\nKRS 355.2-504 but impairs neither the rights given to the buyer by shipment and\nidentification of the go ods to the contract nor the seller's powers as a holder of a\nnegotiable document.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=40650","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:42Z","sha256":"4d5bc6cc969caacf4e5180fa9935fec6dff385bbef65e36e5fccf98a9bd6e627","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.2-504","next":"us-ky/krs-355.2-506"},"notice":"GroundRules: Original legal text. Not legal advice."}