Title 11, Chapter 2, Section 505
Seller's shipment under reservation.
(1) Where the seller has identified goods to the contract by or
(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 Code Section 11-2-507) 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) 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 Code Section 11-2-504 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.