816                               LAWS OF MARYLAND                        [CH. 538

buyer indicates in addition only the seller's expectation of transfer-
ring that interest to the person named.

(b) a non-negotiable bill of lading to himself or his nominee re-
serves possession of the goods as security, but except in a case of
conditional delivery (subsection (2) of Section 2—507) a non-negoti-
able bill of lading naming the buyer as consignee reserves no security
interest even though the seller retains possession of the bill of lading.

(2) When shipment by the seller with reservation of a security
interest is in violation of the contract for sale it constitutes an im-
proper contract for transportation within the preceding section but
impairs neither the rights given to the buyer by shipment and identi-
fication of the goods to the contract nor the seller's powers as a holder
of a negotiable document.

2—506. Rights of Financing Agency.

(1)  A financing agency by paying or purchasing for value a draft
which relates to a shipment of goods acquires to the extent of the
payment or purchase and in addition to its own rights under the draft
and any document of title securing it any rights of the shipper in the
goods including the right to stop delivery and the shipper's right to
have the draft honored by the buyer.

(2)  The right to reimbursement of a financing agency which has
in good faith honored or purchased the draft under commitment to
or authority from the buyer is not impaired by subsequent discovery
of defects with reference to any relevant document which was ap-
parently regular on its face.

2—507. Effect of Seller's Tender; Delivery on Condition.

(1)   Tender of delivery is a condition to the buyer's duty to accept
the goods and, unless otherwise agreed, to his duty to pay for them.
Tender entitles the seller to acceptance of the goods and to payment
according to the contract.

(2)   Where payment is due and demanded on the delivery to the
buyer of goods or documents of title, his right as against the seller
to retain or dispose of them is conditional upon his making the
payment due.

2—508. Cure by Seller of Improper Tender or Delivery; Replace-
ment.

(1)  Where any tender or delivery by the seller is rejected because
non-conforming and the time for performance has not yet expired,
the seller may seasonably notify the buyer of his intention to cure
and may then within the contract time make a conforming delivery.

(2)   Where the buyer rejects a non-conforming tender which the
seller had reasonable grounds to believe would be acceptable with or
without money allowance the seller may if he seasonably notifies the
buyer have a further reasonable time to substitute a conforming
tender.

2—509. Risk of Loss in the Absence of Breach.

(1) Where the contract requires or authorizes the seller to ship
the goods by carrier