1. (1) Where the seller has identified goods to the contract by or before shipment:

   1. (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 buyer indicates in addition only the seller's expectation of transferring that interest to the person named. (b) a nonnegotiable bill of lading to himself or his nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection (2) of Section 12A-2-507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession of the bill of lading.

2. (2) When shipment by the seller with reservation of 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 identification of the goods to the contract nor the seller's powers as a holder of a negotiable document.

   Oklahoma Code Comment

   Previous Oklahoma law is contra to (1) (a) and the first part of (b) and is changed hereby. Previously in Oklahoma, the shipment of

   goods to the seller's order, or consigned to the seller, reserved "title" and not merely a security interest. Shaw-Spears Gin Co. v. Apache Cotton Oil & Mfg. Co., 112 Okl. 202, 240 P. 732 (1925); St. Louis Carbonating & Mfg. Co. v. Lookeba State Bank,

   Uniform Commercial Code Comment

   The Uniform Commercial Code was developed by

   The American Law Institute and the National Conference of Commissioners on Uniform State Laws. These organizations hold the copyright on the official comments to the Uniform Commercial Code. The Oklahoma Supreme Court attempted but was unable to obtain permission to reproduce the Official Comments here. For more information on these organizations, click on the links above. To email your comments, click on one of the links below. The American Law Institute
   4025 Chestnut Street
   Philadelphia, PA 19104
   Phone: (215) 243-1600
   FAX: (215) 243-1664
   Email National Conference of Commissioners on Uniform State Laws
   676 N. St. Clair Street, Suite 1700
   Chicago, Illinois 60611
   (312) 915-0195
   Email

   Definitional Cross References:

   "

   Bill of lading". Section 1-201.
   "Buyer". Section 2-103.
   "Consignee". Section 7-102.
   "Contract". Section 1-201.
   "Contract for sale". Section 2-106.
   "Delivery". Section 1-201.
   "Financing agency". Section _-104.
   "Goods". Section 2-105.
   "Holder". Section 1-201.
   "Person". Section 1-201.
   "Security interest". Section 1-201.
   "Seller". Section 2-103.

Laws 1961, p. 89, §