MARVIN MANDEL, Governor

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a security interest is in violation of the contract for
sale it constitutes an improper contract for
transportation within the preceding section but impairs
neither the rights given to the buyer by shipment and
[indentificationl IDENTIFICATION 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 apparently
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;
replacement.

(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.