24.06.050 Seller's Shipment Under Reservation

(a) Where the seller has identified goods to the contract by or before shipment,

(1) His procurement of a negotiable bill of lading to his or her own order, or otherwise reserves in him or her a security interest in the goods. His or her procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the seller's expectation of transferring that interest to the person named.

(2) A nonnegotiable bill of lading to himself or his or her nominee reserves possession of the goods as security, except in a case of conditional delivery (Section 24.06.070(b) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession of the bill of lading.

(b) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within Section 24.06.040, but impairs neither the rights given to the buyer by shipment, and identification of the goods to the contract, nor the seller's powers as a holder of a negotiable document.