812                               LAWS OF MARYLAND                        [CH. 538

Part 4
Title, Creditors and Good Faith Purchasers

2—401. Passing of Title; Reservation for Security; Limited Appli-
cation of This Section.

Each provision of this Sub-title with regard to the rights, obliga-
tions and remedies of the seller, the buyer, purchasers or other third
parties applies irrespective of title to the goods except where the
provision refers to such title. Insofar as situations are not covered
by the other provisions of this Sub-title and matters concerning title
become material the following rules apply:

(1)   Title to goods cannot pass under a contract for sale prior to
their identification to the contract (Section 2—501), and unless other-
wise explicitly agreed the buyer acquires by their identification a
special property as limited by this Article. Any retention or reser-
vation by the seller of the title (property) in goods shipped or
delivered to the buyer is limited in effect to a reservation of a security
interest. Subject to these provisions and to the provisions of the
Sub-title on Secured Transactions (Sub-title 9), title to goods passes
from the seller to the buyer in any manner and on any conditions
explicitly agreed on by the parties.

(2)   Unless otherwise explicitly agreed title passes to the buyer at
the time and place at which the seller completes his performance with
reference to the physical delivery of the goods, despite any reserva-
tion of a security interest and even though a document of title is to
be delivered at a different time or place; and in particular and despite
any reservation of security interest by the bill of lading

(a)  if the contract requires or authorizes the seller to send the
goods to the buyer but does not require him to deliver them at destina-
tion, title passes to the buyer at the time and place of shipment; but

(b)  if the contract requires delivery at destination, title passes on
tender there.

(8) Unless otherwise explicitly agreed where delivery is to be
made without moving the goods,

(a)  if the seller is to deliver a document of title, title passes at the
time when and the place where he delivers such documents; or

(b)  if the goods are at the time of contracting already identified
and no documents a/re to be delivered, title passes at the time and
place of contracting.

(4) A rejection or other refusal by the buyer to receive or retain
the goods, whether or not justified, or a justified revocation of ac-
ceptance revests title to the goods in the seller. Such revesting occurs
by operation of law and is not a "sale."

2—402. Rights of Seller's Creditors Against Sold Goods

(1)  Except as provided in sub-sections (2) and (3), rights of un-
secured creditors of the seller with respect to goods which have been
identified to a contract for sale are subject to the buyer's rights to
recover the goods under this Sub-title (Sections 2—502 and 2—716).

(2)  A creditor of the seller may treat a sale or an identification of
goods to a contract for sale as void if as against him a retention of