                                 CODE OF VIRGINIA

LESSOR&#8217;S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE (§ 8.2A-526)

1. A lessor may stop delivery of goods in the possession of a carrier or other
bailee if the lessor discovers the lessee to be insolvent and may stop delivery
of carload, truckload, planeload, or larger shipments of express or freight if
the lessee repudiates or fails to make a payment due before delivery, whether
for rent, security or otherwise under the lease contract, or for any other
reason the lessor has a right to withhold or take possession of the goods.

2. In pursuing its remedies under subsection (1) of this section, the lessor may
stop delivery until:

   a. Receipt of the goods by the lessee;

   b. Acknowledgment to the lessee by any bailee of the goods, except a carrier,
   that the bailee holds the goods for the lessee; or

   c. Such an acknowledgment to the lessee by a carrier via reshipment or as a
   warehouse.

3. (a) To stop delivery, a lessor shall so notify as to enable the bailee by
reasonable diligence to prevent delivery of the goods.

   b. After notification, the bailee shall hold and deliver the goods according
   to the directions of the lessor, but the lessor is liable to the bailee for
   any ensuing charges or damages.

   c. A carrier who has issued a nonnegotiable bill of lading is not obliged to
   obey a notification to stop received from a person other than the consignor.

HISTORY: 1991, c. 536; 2004, c. 200.