Tex. Bus. & Com. Code § 2.402 · Subchapter D. TITLE, CREDITORS AND GOOD FAITH PURCHASERS
RIGHTS OF SELLER'S CREDITORS AGAINST SOLD GOODS.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Except as provided in Subsections (b) and (c), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this chapter (Sections 2.502 and 2.716).
(b) A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against him a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent.
(c) Nothing in this chapter shall be deemed to impair the rights of creditors of the seller
(1) under the provisions of the chapter on Secured Transactions (Chapter 9); or
(2) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a pre-existing claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this chapter constitute the transaction a fraudulent transfer or voidable preference.
Notes and commentary — not statutory text
History
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.2.htm
- Text hash
- sha256 703aff57dcf6159fa624665d16edfc0ccabd32199b8e6c7f9f0ee687852272fe
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business & Commerce Code
- Tex. Bus. & Com. Code § 2.502BUYER'S RIGHT TO GOODS ON SELLER'S REPUDIATION, FAILURE TO DELIVER, OR INSOLVENCY.Printed as Sections 2.502 and 2.716
- Tex. Bus. & Com. Code § 2.716BUYER'S RIGHT TO SPECIFIC PERFORMANCE OR REPLEVIN.Printed as Sections 2.502 and 2.716
- Tex. Bus. & Com. Code ch. 9SECURED TRANSACTIONSPrinted as Chapter 9
Cited by 2 provisions
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Business & Commerce Code
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