(810 ILCS 5/2-702)
(from Ch. 26, par. 2-702)
Seller's remedies on discovery of buyer's insolvency.
(1) Where the seller discovers the buyer to be insolvent he may refuse
delivery except for cash including payment for all goods theretofore
delivered under the contract, and stop delivery under this Article (Section
(2) Where the seller discovers that the buyer has received goods on
credit while insolvent he may reclaim the goods upon demand made within 10
days after the receipt, but if misrepresentation of solvency has been made
to the particular seller in writing within 3 months before delivery the 10
day limitation does not apply. Except as provided in this subsection the
seller may not base a right to reclaim goods on the buyer's fraudulent or
innocent misrepresentation of solvency or of intent to pay.
(3) The seller's right to reclaim under subsection (2) is subject to the
rights of a buyer in ordinary course or other good faith purchaser under
this Article (Section 2-403). Successful reclamation of goods excludes all
other remedies with respect to them.
(Source: Laws 1961, 1st SS., p. 7