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Session Laws, 1999
Volume 796, Page 2089   View pdf image
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9-331. PRIORITY OF RIGHTS OF PURCHASERS OF INSTRUMENTS, DOCUMENTS, AND
SECURITIES UNDER OTHER ARTICLES; PRIORITY OF INTERESTS IN FINANCIAL
ASSETS AND SECURITY ENTITLEMENTS UNDER TITLE 8.

(A) THIS TITLE 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, OR A PROTECTED PURCHASER OF A
SECURITY. THESE HOLDERS OR PURCHASERS TAKE PRIORITY OVER AN EARLIER
SECURITY INTEREST, EVEN IF PERFECTED, TO THE EXTENT PROVIDED IN TITLES 3, 7,
AND 8 OF THIS ARTICLE.

(B) THIS TITLE 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 TITLE 8 OF THIS ARTICLE.

(C) FILING UNDER THIS TITLE DOES NOT CONSTITUTE NOTICE OF A CLAIM OR
DEFENSE TO THE HOLDERS, OR PURCHASERS, OR PERSONS DESCRIBED IN
SUBSECTIONS (A) AND (B).

9-332. TRANSFER OF MONEY; TRANSFER OF FUNDS FROM DEPOSIT ACCOUNT.

(A) A TRANSFEREE OF MONEY TAKES THE MONEY FREE OF A SECURITY
INTEREST UNLESS THE TRANSFEREE ACTS IN COLLUSION WITH THE DEBTOR IN
VIOLATING THE RIGHTS OF THE SECURED PARTY.

(B) A TRANSFEREE OF FUNDS FROM A DEPOSIT ACCOUNT TAKES THE FUNDS
FREE OF A SECURITY INTEREST IN THE DEPOSIT ACCOUNT UNLESS THE
TRANSFEREE ACTS IN COLLUSION WITH THE DEBTOR IN VIOLATING THE RIGHTS OF
THE SECURED PARTY.

9-333. PRIORITY OF CERTAIN LIENS ARISING BY OPERATION OF LAW.

(A) IN THIS SECTION, "POSSESSORY LIEN" MEANS AN INTEREST, OTHER THAN
A SECURITY INTEREST OR AN AGRICULTURAL LIEN:

(1) WHICH SECURES PAYMENT OR PERFORMANCE OF AN OBLIGATION
FOR SERVICES OR MATERIALS FURNISHED WITH RESPECT TO GOODS BY A PERSON
IN THE ORDINARY COURSE OF THE PERSON'S BUSINESS;

(2) WHICH IS CREATED BY STATUTE OR RULE OF LAW IN FAVOR OF THE
PERSON; AND

(3) WHOSE EFFECTIVENESS DEPENDS ON THE PERSON'S POSSESSION
OF THE GOODS.

(B) A POSSESSORY LIEN ON GOODS HAS PRIORITY OVER A SECURITY
INTEREST IN THE GOODS UNLESS THE LIEN IS CREATED BY A STATUTE THAT
EXPRESSLY PROVIDES OTHERWISE.

9-334. PRIORITY OF SECURITY INTERESTS IN FIXTURES AND CROPS.

(A) A SECURITY INTEREST UNDER THIS ARTICLE MAY BE CREATED IN GOODS
THAT ARE FIXTURES OR MAY CONTINUE IN GOODS THAT BECOME FIXTURES. A

 

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Session Laws, 1999
Volume 796, Page 2089   View pdf image
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