SEC. 75-6-109. What creditors protected.
(1) The creditors of the transferor mentioned in this chapter are those holding claims based on transactions or events occurring before the bulk transfer, but creditors who become such after notice to creditors is given (Sections 6-105 and 6-107) [Secs. 75-6-105 and 75-6-107] are not entitled to notice.
(2) Against the aggregate obligation imposed by the provisions of this chapter concerning the application of proceeds (Section 6-106 and subsection (3)(c) of 6-108) [Secs. 75-6-106 and 75-6-108 (3)(c)] the transferee or auctioneer is entitled to credit for sums paid to particular creditors of the transferor, not exceeding the sums believed in good faith at the time of the payment to be properly payable to such creditors.
SOURCES: Codes, 1942, Sec. 41A:6-109; Laws, 1966, ch. 316, Sec. 6-109, eff March 31, 1968.