South Carolina § 36-2-505 - Seller's shipment under reservation.
Full text of South Carolina South Carolina Code of Laws § 36-2-505 — Seller's shipment under reservation., with citation guidance and answers to common questions.
§ 36-2-505. 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 nonnegotiable 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 36-2-507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control 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 (Section 36-2-504) 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 of title.
HISTORY: 1962 Code SECTION 10.2-505; 1966 (54) 2716; 2014 Act No. 213 (S.343), SECTION 11, eff October 1, 2014.
Editor's Note
2014 Act No. 213, SECTION 51, provides as follows:
"SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date."
Effect of Amendment
2014 Act No. 213, SECTION 11, in subsection (1)(b), inserted "or control" before "of the bill of lading"; in subsection (2), inserted "of title" following "of a negotiable document"; and made other nonsubstantive changes in subsections (1)(b) and (2).
Source: official South Carolina text · Last verified 2026-08-27
Frequently Asked Questions About South Carolina § 36-2-505
What does South Carolina Code of Laws § 36-2-505 cover?
Section 36-2-505 ("Seller's shipment under reservation.") is part of the South Carolina Code of Laws, the codified statutory law of South Carolina. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Carolina § 36-2-505?
A common citation format is "South Carolina Code of Laws § 36-2-505" (South Carolina). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Carolina official source linked on this page or consult a licensed South Carolina attorney.
How does South Carolina § 36-2-505 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Carolina can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Carolina.