N.C. Gen. Stat. § 25-2-501

Insurable interest in goods; manner of identification of goods

Known as the Uniform Commercial Code

The act spans §§ 25–25 (616 sections).

Applied in 3 court decisions — leading case Abbott v. Blackwelder Furniture Co. (1983)

Most recently applied in 347 F. Supp. 2d 241 - United States v. 328 Pounds, More or Less, of Wild American Ginseng (December 2004)

1965, c. 700, s. 1; 1967, c. 24, s. 8; 2025-25, s. 112.

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) 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 them. 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

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

(2) if the contract is for the sale of future goods other than those described in subdivision (3) [of this section], when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

(3) 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.

(b) 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.

Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.