Section 2-702 - Seller's Remedies on Discovery of Buyer's Insolvency(1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this article (Section 2-705).(2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten (10) days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three (3) months before delivery the ten-day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.(3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser under this article (Section 2-403). Successful reclamation of goods excludes all other remedies with respect to them.Okla. Stat. tit. 12A, § 2-702
Laws 1961, p. 96, § 2-702; Amended by Laws 1970, SB 232, c. 246, § 1.Oklahoma Code Comment
(1) Previous Oklahoma law, by dicta, is in accord. In Clements v. Jackson County Oil &Gas Co., 61 Okl. 247, 161 P. 216, L.R.A.1917C, 437 (1916) the court said that it was well settled in sales contracts that insolvency of a buyer was grounds for "rescission" as to property not yet delivered. Note that under this section the seller is entitled to demand cash, not only for the goods tendered, but for all goods theretofore delivered under the contract.
(2) and (3) There are no previous Oklahoma statutes or decisions. These paragraphs substantially change the previous law of other jurisdictions which have passed thereon.
The Code does not specify how the seller may reclaim the goods, but clearly any method presently authorized by statute, including replevin, is intended.
Section 9-301(3) includes execution creditors in the definition of lien creditors.