§ 10:9-331 — Priority of rights of purchasers of controllable accounts, controllable electronic

§9-331. Priority of rights of purchasers of controllable accounts, controllable electronic
records, controllable payment intangibles, documents, instruments, and securities
under other Chapters; priority of interests in financial assets and security entitlements
and protection against assertion of claim under Chapters 8 and 12 of this Title
(a) Rights under Chapters 3, 7, 8, and 12 of this Title not limited. This Chapter does
not limit the rights of a holder in due course of a negotiable instrument, a holder to which a
negotiable document of title has been duly negotiated, a protected purchaser of a security,
or a qualifying purchaser of a controllable account, controllable electronic record, or
controllable payment intangible. These holders or purchasers take priority over an earlier
security interest, even if perfected, to the extent provided in Chapters 3, 7, 8, and 12 of this
Title.
(b) Protection under Chapters 8 and 12 of this Title. This Chapter does not limit the
rights of or impose liability on a person to the extent that the person is protected against the
assertion of an adverse claim under Chapter 8 or 12 of this Title.
(c) Filing not notice. Filing under this Chapter does not constitute notice of a claim
or defense to the holders, or purchasers, or persons described in Subsections (a) and (b).

Legislative History

Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2024, No. 773, §1.