H.B. 140                                                 VETOES

may be perfected by control of the collateral under [§ 9-104, § 9-105, § 9-106, or §
9-107] § 7-106, § 9-104, § 9-105, § 9-106, OR § 9-107.

(b) A security interest in deposit accounts, electronic chattel paper, [or]
letter-of-credit rights, OR ELECTRONIC DOCUMENTS is perfected by control under [§
9-104, § 9-105, or § 9-107] § 7-106, § 9-104, § 9-105, OR § 9-107 when the secured party
obtains control and remains perfected by control only while the secured party retains
control.

9-317.

(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 security certificate 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.

(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.

9-338.

If a security interest or agricultural lien is perfected by a filed financing
statement providing information described in § 9-516(b)(5) which is incorrect at the
time the financing statement is filed:

(1)     The security interest or agricultural lien 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 or agricultural lien 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.

9-601.

(b) A secured party in possession of collateral or control of collateral under [§
9-104, § 9-105, § 9-106, or § 9-107] § 7-106, § 9-104, § 9-105, § 9-106, OR § 9-107 has the
rights and duties provided in § 9-207.

SECTION 3. AND BE IT FURTHER ENACTED, That this Act:

(1)     applies to a document of title that is issued or a bailment that arises
on or after the effective date of this Act;

(2)     does not apply to a document of title that is issued or a bailment that
arises before the effective date of this Act even if the document of title or bailment

- 2956 -