400.2-501. Insurable interest in goods--manner of identification of goods.
Insurable interest in goods--manner of identification of goods.
400.2-501. (1) The buyer obtains a special property and aninsurable interest in goods by identification of existing goodsas goods to which the contract refers even though the goods soidentified are nonconforming and he has an option to return orreject them. Such identification can be made at any time and inany manner explicitly agreed to by the parties. In the absenceof explicit agreement identification occurs
(a) when the contract is made if it is for the sale of goodsalready existing and identified;
(b) if the contract is for the sale of future goods otherthan those described in paragraph (c), when goods are shipped,marked or otherwise designated by the seller as goods to whichthe contract refers;
(c) when the crops are planted or otherwise become growingcrops or the young are conceived if the contract is for the saleof unborn young to be born within twelve months after contractingor for the sale of crops to be harvested within twelve months orthe next normal harvest season after contracting whichever islonger.
(2) The seller retains an insurable interest in goods solong as title to or any security interest in the goods remains inhim and where the identification is by the seller alone he mayuntil default or insolvency or notification to the buyer that theidentification is final substitute other goods for thoseidentified.
(3) Nothing in this section impairs any insurable interestrecognized under any other statute or rule of law.
(L. 1963 p. 503 § 2-501)