Tex. Bus. & Com. Code § 2A.526 · Subchapter E. DEFAULT
LESSOR'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(b) In pursuing its remedies under Subsection (a), the lessor may stop delivery until:
(1) receipt of the goods by the lessee;
(2) acknowledgement to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(3) such an acknowledgement to the lessee by a carrier via reshipment or as a warehouse.
(c)(1) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(2) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuing charges or damages.
(3) A carrier who has issued a nonnegotiable bill of lading is not obligated to obey a notification to stop received from a person other than the consignor.
Notes and commentary — not statutory text
History
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 15, eff. September 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.2A.htm
- Text hash
- sha256 9df7a7137b6bcf15cd31ba4b841aade574c4b1b891e476d9a3cd54222c8d0e9c
- 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
Cited by 5 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 2A.526. Each shows the citation as that text prints it.
Business & Commerce Code
- Tex. Bus. & Com. Code § 2A.504LIQUIDATION OF DAMAGES.Printed as Section 2A.525 or 2A.526
- Tex. Bus. & Com. Code § 2A.523LESSOR'S REMEDIES.Printed as Section 2A.526
- Tex. Bus. & Com. Code § 2A.527LESSOR'S RIGHTS TO DISPOSE OF GOODS.Printed as Section 2A.525 or 2A.526
- Tex. Bus. & Com. Code § 7.403OBLIGATION OF WAREHOUSE OR CARRIER TO DELIVER; EXCUSE.Printed as Section 2A.526
- Tex. Bus. & Com. Code § 7.504RIGHTS ACQUIRED IN ABSENCE OF DUE NEGOTIATION; EFFECT OF DIVERSION; STOPPAGE OF DELIVERY.Printed as Section 2A.526
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.