§ 9-320. 9-320

264 words·~1 min read·/us/ucc/a9/s9-320

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)[Buyer in ordinary course of business.] Except as otherwise provided in subsection (e), 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.

(b)[Buyer of consumer goods.] Except as otherwise provided in subsection (e), 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:

(1)without knowledge of the security interest;

(2)for value;

(3)primarily for the buyer's personal, family, or household purposes; and

(4)before the filing of a financing statement covering the goods.

(c)[Effectiveness of filing for subsection (b).] To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by Section 9-316(a) and

(b).

(d)[Buyer in ordinary course of business at wellhead or minehead.] 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 .

(e)[Possessory security interest not affected.] Subsections

(a)and

(b)do not affect a security interest in goods in the possession of the secured party under Section 9-313 .