J. MILLARD TAWES, Governor                        815

(3) Where the seller is required to deliver at a particular destina-
tion tender requires that he comply with subsection (1) and also in
any appropriate case tender documents as described in subsections
(4) and (5) of this section.

(4) Where goods are in the possession of a bailee and are to be
delivered without being moved

(a)  tender requires that the seller either tender a negotiable docu-
ment of title covering such goods or procure acknowledgment by the
bailee of the buyer's right to possession of the goods; but

(b)  tender to the buyer of a non-negotiable document of title or
of a written direction to the bailee to deliver is sufficient tender un-
less the buyer seasonably objects, and receipt by the bailee of notifi-
cation of the buyer's rights fixes those rights as against the bailee
and all third persons; but risk of loss of the goods and of any failure
by the bailee to honor the non-negotiable document of title or to obey
the direction remains on the seller until the buyer has had a reason-
able time to present the document or direction, and a refusal by the
bailee to honor the document or to obey the direction defeats the
tender.

(5) Where the contract requires the seller to deliver documents

(a)  he must tender all such documents in correct form, except as
provided in this Sub-title with respect to bills of lading in a set (sub-
section (2) of Section 2—323); and

(b)  tender through customary banking channels is sufficient and
dishonor of a draft accompanying the documents constitutes non-
acceptance or rejection.

2—504. Shipment by Seller.

Where the seller is required or authorized to send the goods to the
buyer and the contract does not require him to deliver them at a
particular destination, then unless otherwise agreed he must

(a)  put the goods in the possession of such a carrier and make
such a contract for their transportation as may be reasonable having
regard to the nature of the goods and other circumstances of the
case; and

(b)  obtain and promptly deliver or tender in due form any docu-
ment necessary to enable the buyer to obtain possession of the goods
or otherwise required by the agreement or by usage of trade; and

(c)  promptly notify the buyer of the shipment.

Failure to notify the buyer under paragraph (c) or to make a
proper contract under paragraph (a) is a ground for rejection only
if material delay or loss ensues.

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