126

LAWS OF MARYLAND

[Ch. 49

2—501. Insurable interest in goods; manner of
identification of goods.

(1)   The buyer obtains a special property and an
insurable interest in goods by identification of existing
goods as goods to which the contract refers even though
the goods so identified are nonconforming and he has an
option to return or reject then. Such identification
can be made at any time and in any manner explicitly
agreed to by the parties. In the absence of explicit
agreement identification occurs

(a)   When the contract is made if it is for
the sale of goods already existing and identified;

(b)   If   the contract is for the sale of future
goods other than   those described in paragraph (c) , when
goods are shipped,    marked or otherwise designated by the
seller as goods to    which the contract refers;

(c)    When the crops are planted or otherwise
become growing crops or the young are conceived if the
contract is for the sale of unborn young to be born
within twelve months after contracting or for the sale of
crops to be harvested within twelve months or the next
normal harvest season after contracting whichever is
longer.

(2)   The seller retains an insurable interest in
goods so long as title to or any security interest in the
goods remains in him and where the identification is by
the seller alone he may until default or insolvency or
notification to the buyer that the identification is
final substitute other goods for those identified.

(3)   Nothing in this section impairs any insurable
interest recognized under any other statute or rule of
law.

2—502. Buyer's right to goods on seller's insolvency.

(1)   Subject to subsection (2) and even though the
goods have not been shipped a buyer who has paid a part
or all of the price of goods in which he has a special
property under the provisions of the immediately
preceding section may on making and keeping good a tender
of any unpaid portions of their price recover then from
the seller if the seller becomes insolvent within ten
days after a receipt of the first installment on their
price.

(2)    If the identification creating his special
property has been made by the buyer he acquires the right
to recover the goods only if they conform to the contract