(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 490:2-705).
(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
(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 or lien creditor under this
article (section 490:2-403). Successful reclamation of goods excludes all other remedies with respect to them.
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