Article 9-A: TRANSACTIONS HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
Part 3: PERFECTION AND PRIORITY HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
Subpart 3: PRIORITY HEADING: PL 1999, C. 699, PT. A, §2 (NEW)
§9-1320. Buyer of goods
(1). Except as otherwise provided in subsection (5), a buyer in ordinary course of business, other than a person buying farm
products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even
if the security interest is perfected and the buyer knows of its existence.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(2). Except as otherwise provided in subsection (5), a buyer of goods from a person who used or bought the goods for use primarily
for personal, family or household purposes takes free of a security interest, even if perfected, if the buyer buys:
(a). Without knowledge of the security interest; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(b). For value; [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(c). Primarily for the buyer's personal, family or household purposes; and [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
(d). Before the filing of a financing statement covering the goods. [1999, c. 699, Pt. A, §2 (NEW); 1999, c. 699, Pt. A, §4 (AFF).]
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(3). To the extent that it affects the priority of a security interest over a buyer of goods under subsection (2), the period
of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by section 9-1316, subsections
(1) and (2).
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(4). A buyer in ordinary course of business buying oil, gas or other minerals at the wellhead or minehead or after extraction
takes free of an interest arising out of an encumbrance.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
(5). Subsections (1) and (2) do not affect a security interest in goods in the possession of the secured party under section
9-1313.
[
1999, c. 699, Pt. A, §2 (NEW);
1999, c. 699, Pt. A, §4 (AFF)
.]
SECTION HISTORY
1999, c. 699, §A2 (NEW).
1999, c. 699, §A4 (AFF).
Data for this page extracted on 11/02/2009 01:51:30.