§ 26-1-9.1-317 — Interests that take priority over or take free of unperfected security interest or agricultural lien

Indiana § 26-1-9.1-317

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) A security interest or agricultural lien
is subordinate to the rights of:
(1) a person entitled to priority under IC 26-1-9.1-322; and
(2) except as provided in subsection (e), a person that becomes a
lien creditor before the earlier of the time:
(A) the security interest or agricultural lien is perfected; or
(B) one (1) of the conditions specified in IC 26-1-9.1-203(b)(3)
is met;
and a financing statement covering the collateral is filed.
(b) Except as otherwise provided in subsection (e), a buyer, other
than a secured party, of goods, instruments, tangible documents, or a
certificated security takes free of a security interest or agricultural lien
if the buyer gives value and receives delivery of the collateral without
knowledge of the security interest or agricultural lien and before it is
perfected.
(c) Except as otherwise provided in subsection (e), a lessee of goods
takes free of a security interest or agricultural lien if the lessee gives
value and receives delivery of the collateral without knowledge of the
security interest or agricultural lien and before it is perfected.
(d) Subject to subsections (f) through (i), a licensee of a general
intangible or a buyer, other than a secured party, of collateral other than
goods, instruments, tangible documents, or a certificated security takes
free of a security interest if the licensee or buyer gives value without
knowledge of the security interest and before it is perfected.
(e) Except as otherwise provided in IC 26-1-9.1-320 and IC 26-1-9.1-321, if a person files a financing statement with respect to a
purchase-money security interest before or within twenty (20) days
after the debtor receives delivery of the collateral, the security interest
takes priority over the rights of a buyer, lessee, or lien creditor that
arise between the time the security interest attaches and the time of
filing.
(f) A buyer, other than a secured party, of chattel paper takes free of
a security interest if, without knowledge of the security interest and
before it is perfected, the buyer gives value and:
(1) receives delivery of each authoritative tangible copy of the
record evidencing the chattel paper; and
(2) if each authoritative electronic copy of the record evidencing
the chattel paper can be subjected to control under section 105 of
this chapter, obtains control of each authoritative electronic copy.
(g) A buyer of an electronic document takes free of a security
interest if, without knowledge of the security interest and before it is
perfected, the buyer gives value and, if each authoritative electronic
copy of the document can be subjected to control under IC 26-1-7-106,
obtains control of each authoritative electronic copy.
(h) A buyer of a controllable electronic record takes free of a
security interest if, without knowledge of the security interest and
before it is perfected, the buyer gives value and obtains control of the
controllable electronic record.
(i) A buyer, other than a secured party, of a controllable account or
a controllable payment intangible takes free of a security interest if,
without knowledge of the security interest and before it is perfected, the
buyer gives value and obtains control of the controllable account or
controllable payment intangible.

Legislative History

As added by P.L.57-2000, SEC.45. Amended by P.L.165-2001, SEC.6; P.L.143-2007, SEC.74; P.L.54-2011, SEC.8; P.L.199-2023, SEC.62.