2006 New York Code - Seller\'s Shipment Under Reservation.

 
  Section 2--505. Seller's Shipment Under Reservation.
    (1) Where the seller has identified goods to the contract by or before
  shipment:
         (a) his  procurement  of  a  negotiable bill of lading to his own
             order or otherwise reserves in him a security interest in the
             goods. His  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.
         (b) a non-negotiable bill of lading to  himself  or  his  nominee
             reserves  possession of the goods as security but except in a
             case of  conditional  delivery  (subsection  (2)  of  Section
             2--507)  a  non-negotiable bill of lading naming the buyer as
             consignee reserves  no  security  interest  even  though  the
             seller retains possession of the bill of lading.
    (2)  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 the preceding section 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.