§ 9-320 — Buyer of Goods

New York § 9-320

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 3: Perfection and Priority
• Subpart 3: Priority
• Art. 9: Secured Transactions

Text

Section 9--320. Buyer of Goods.\n (a) Buyer in ordinary course of business. Except as otherwise provided\nin subsection (e), a buyer in ordinary course of business, other than a\nperson buying farm products from a person engaged in farming operations,\ntakes free of a security interest created by the buyer's seller, even if\nthe security interest is perfected and the buyer knows of its existence.\n (b) Buyer of consumer goods. Except as otherwise provided in\nsubsection (e), a buyer of goods from a person who used or bought the\ngoods for use primarily for personal, family, or household purposes\ntakes free of a security interest, even if perfected, if the buyer buys:\n (1) without knowledge of the security interest;\n (2) for value;\n (3) primarily for the buyer's personal, family, or household\n purposes; and\n (4) before the filing of a financing statement covering the\n goods.\n (c) Effectiveness of filing for subsection (b). To the extent that it\naffects the priority of a security interest over a buyer of goods under\nsubsection (b), the period of effectiveness of a filing made in the\njurisdiction in which the seller is located is governed by Section\n9--316(a) and (b).\n (d) Buyer in ordinary course of business at wellhead or minehead. A\nbuyer in ordinary course of business buying oil, gas, or other minerals\nat the wellhead or minehead or after extraction takes free of an\ninterest arising out of an encumbrance.\n (e) Possessory security interest not affected. Subsections (a) and (b)\ndo not affect a security interest in goods in the possession of the\nsecured party under Section 9--313.\n