House Bill No. 6854
               House Bill No. 6854

              PUBLIC ACT NO. 93-107


    Section  1.  Section  42a-1-105 of the general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (1)  Except  as  provided  hereafter  in  this
section, when a  transaction  bears  a  reasonable
relation  to  this state and also to another state
or nation the  parties  may  agree  that  the  law
either  of  this  state  or of such other state or
nation  shall  govern  their  rights  and  duties.
Failing  such  agreement  this  title  applies  to
transactions bearing an  appropriate  relation  to
this state.
    (2)  Where  one of the following provisions of
this title  specifies  the  applicable  law,  that
provision  governs  and  a  contrary  agreement is
effective only to the extent permitted by the law,
including   the   conflict   of   laws  rules,  so
    Rights   of   creditors  against  sold  goods.
Section 42a-2-402. Applicability of the article on
bank deposits and collections. Section 42a-4-102.
    Governing   law   in   the  article  on  funds
transfers. Section 42a-4A-507.
    [Bulk  transfers  subject  to  the  article on
bulk transfers. Section 42a-6-102.]
    Applicability  of  the  article  on investment
securities. Section 42a-8-106.
    Perfection   provisions   of  the  article  on
secured transactions. Section 42a-9-103a.
    Sec.  2.  Section  42a-2-403  of  the  general
statutes  is  repealed  and   the   following   is
substituted in lieu thereof:
    (1)  A  purchaser  of goods acquires all title
which his transferor had or had power to  transfer
except  that  a  purchaser  of  a limited interest
acquires rights only to the extent of the interest
purchased.  A person with voidable title has power
to transfer a good title to a good faith purchaser
for  value. When goods have been delivered under a
transaction of purchase  the  purchaser  has  such
power  even though (a) the transferor was deceived
as to the identity of the purchaser,  or  (b)  the
delivery  was  in  exchange  for  a check which is
later dishonored, or (c) it was  agreed  that  the
transaction  was  to  be a "cash sale," or (d) the
delivery was procured through fraud punishable  as
larcenous under the criminal law.
    (2)  Any  entrusting of possession of goods to
a merchant who deals in goods of that  kind  gives
him  power to transfer all rights of the entruster
to a buyer in ordinary course of business.
    (3)  "Entrusting"  includes  any  delivery and
any  acquiescence  in  retention   of   possession
regardless  of any condition expressed between the
parties  to  the  delivery  or  acquiescence   and
regardless  of  whether  the  procurement  of  the
entrusting or the possessor's disposition  of  the
goods  have been such as to be larcenous under the
criminal law.
    (4)  The  rights  of other purchasers of goods
and of lien creditors  are  governed  by  articles
[6,] 7 and 9.
    Sec.  3.  (NEW)  Rights  and  obligations that
arose  under  sections  42a-6-101  to  42a-6-110a,
inclusive,  and  section  42a-9-111 of the general
statutes before their repeal on the effective date
of  this  act  remain valid and may be enforced as
though those sections had not been repealed.
    Sec.   4.   Sections   42-170,   42a-6-101  to
42a-6-110a,  inclusive,  and  42a-9-111   of   the
general statutes are repealed.