U.C.C. - ARTICLE 6 - BULK SALES (Alternative B)
..PART 1. SUBJECT MATTER AND DEFINITIONS
§ 6-106. Schedule of Distribution.
- (1) The seller and buyer shall agree on how the net contract price is to be distributed and set forth their agreement in a written schedule of distribution.
- (2) The schedule of distribution may provide for distribution to any person at any time, including distribution of the entire net contract price to the seller.
- (3) The buyer's undertakings in the schedule of distribution run only to the seller. However, a buyer who fails to distribute the net contract price in accordance with the buyer's undertakings in the schedule of distribution is liable to a creditor only as provided in Section 6-107(1).
- (4) If the buyer undertakes in the schedule of distribution
to distribute any part of the net
contract price to a person other than the seller, and, after the buyer
has given notice in accordance with Section 6-105,
some or all of the anticipated net
contract price is or becomes unavailable for distribution as a consequence
of the buyer's or seller's having complied with an order of court, legal process,
statute, or rule of law, the buyer is excused from any obligation arising under
this Article or under any contract with the seller to distribute the net contract
price in accordance with the buyer's undertakings in the schedule if the buyer:
- (a) distributes the net contract price remaining available in accordance with any priorities for payment stated in the schedule of distribution and, to the extent that the price is insufficient to pay all the debts having a given priority, distributes the price pro rata among those debts shown in the schedule as having the same priority;
- (b) distributes the net contract price remaining available in accordance with an order of court;
- (c) commences a proceeding for interpleader in a court of competent jurisdiction and is discharged from the proceeding; or
- (d) reaches a new agreement with the seller for the distribution of the net contract price remaining available, sets forth the new agreement in an amended schedule of distribution, gives notice of the amended schedule, and distributes the net contract price remaining available in accordance with the buyer's undertakings in the amended schedule.
- (5) The notice under subsection (4)(d) must identify the buyer and the seller, state the filing number, if any, of the original notice, set forth the amended schedule, and be given in accordance with subsection (1) or (2) of Section 6-105, whichever is applicable, at least 14 days before the buyer distributes any part of the net contract price remaining available.
- (6) If the seller undertakes in the schedule of
distribution to distribute any part of the net
contract price, and, after the buyer has given notice in accordance with
Section 6-105, some or all of the anticipated net
contract price is or becomes unavailable for distribution as a consequence
of the buyer's or seller's having complied with an order of court, legal process,
statute, or rule of law, the seller and any person in control of the seller
are excused from any obligation arising under this Article or under any agreement
with the buyer to distribute the net contract price in accordance with the
seller's undertakings in the schedule if the seller:
- (a) distributes the net contract price remaining available in accordance with any priorities for payment stated in the schedule of distribution and, to the extent that the price is insufficient to pay all the debts having a given priority, distributes the price pro rata among those debts shown in the schedule as having the same priority;
- (b) distributes the net contract price remaining available in accordance with an order of court;
- (c) commences a proceeding for interpleader in a court of competent jurisdiction and is discharged from the proceeding; or
- (d) prepares a written amended schedule of distribution of the net contract price remaining available for distribution, gives notice of the amended schedule, and distributes the net contract price remaining available in accordance with the amended schedule.
- (7) The notice under subsection (6)(d) must identify the buyer and the seller, state the filing number, if any, of the original notice, set forth the amended schedule, and be given in accordance with subsection (1) or (2) of Section 6-105, whichever is applicable, at least 14 days before the seller distributes any part of the net contract price remaining available.
previous section | next section
overview
notes
© Copyright 2005 by The American Law Institute and the National Conference of Commissioners on Uniform State Laws; reproduced, published and distributed with the permission of the Permanent Editorial Board for the Uniform Commercial Code for the limited purposes of study, teaching, and academic research.