South Carolina § 36-9-317 Interests that take priority over or take free of security interest or agricultural lien.

South Carolina Statutes

§ 36-9-317 — Interests that take priority over or take free of security interest or agricultural lien.

South Carolina § 36-9-317

Title 36COMMERCIAL CODE

Ch. 9COMMERCIAL CODE—SECURED TRANSACTIONS

This text of South Carolina § 36-9-317 (Interests that take priority over or take free of security interest or agricultural lien.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 36-9-317 (2026).

Text

(a)A security interest or agricultural lien is subordinate to the rights of:

(1)a person entitled to priority under Section 36-9-322; and (2) except as otherwise 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 of the conditions specified in Section 36-9-203(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 tangible chattel paper, tangible documents, goods, instruments, 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

Free access — add to your briefcase to read the full text and ask questions with AI

(a) A security interest or agricultural lien is subordinate to the rights of: (1) a person entitled to priority under Section 36-9-322; and (2) except as otherwise 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 of the conditions specified in Section 36-9-203(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 tangible chattel paper, tangible documents, goods, instruments, 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) A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than 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 Sections 36-9-320 and 36-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.

Legislative History

HISTORY: 1962 Code SECTION 10.9-317; 1966 (54) 2716; 1988 Act No. 494, SECTION 5; 2001 Act No; 67, SECTION 12; 2013 Act No. 96, SECTION 7, eff July 1, 2013; 2014 Act No. 213 (S.343), SECTION 43, eff October 1, 2014. Editor's Note 2014 Act No. 213, SECTION 51, provides as follows: "SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date." Effect of Amendment The 2013 amendment, in subsection (b), substituted "certificated security" for "security certificate"; and in subsection (d), substituted "of collateral other than tangible chattel paper, tangible documents, goods, instruments, or" for "accounts, electronic chattel paper, general intangibles, or investment property other than". 2014 Act No. 213, SECTION 43, in subsection (b), inserted "tangible" before "documents";reenacted subsection (c) with no apparent change; and in subsection (d), substituted "of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than" for "of collateral other than tangible chattel paper, tangible documents, goods, instruments, or".