§ 41-09-58 — (9-338) Priority of security interest perfected by filed financing statement providing certain incorrect information

providing certain incorrect information.
If a security interest is perfected by a filed financing statement providing information
described in subdivision e of subsection 2 of section 41-09-87 which is incorrect at the time the
financing statement is filed:

1. The security interest is subordinate to a conflicting perfected security interest in the
collateral to the extent that the holder of the conflicting security interest gives value in
reasonable reliance upon the incorrect information; and
2. A purchaser, other than a secured party, of the collateral takes free of the security
interest to the extent that, in reasonable reliance upon the incorrect information, the
purchaser gives value and, in the case of tangible chattel paper, tangible documents,
goods, instruments, or a security certificate, receives delivery of the collateral.