As Amended
SEC. 75-9-317. Interests that take priority over or take free of security interest or agricultural lien [Effective January 1, 2002].
(a) A security interest or agricultural lien is subordinate to the rights of:
(1) A person entitled to priority under Section 75-9-322; 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 (1) of the conditions specified in Section 75-9-203(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, 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.
(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, 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 75-9-320 and 75-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty (20) 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.
SOURCES: Former 1972 Code § 75-9-317 [Codes, 1942, §
41A:9-317; Laws, 1966, ch. 316, § 9-317, eff March 31, 1968]
is now found in comparable provisions enacted at § 75-9-402 by Laws,
2001, ch. 495, § 1. Present § 75-9-317 was derived from
1972 Code § 75-2A-307 [Laws, 1994, ch. 445, § 1, eff from and
after July 1, 1994] and former 1972 Code § 75-9-301 [Codes, 1942,
§ 41A:9-301; Laws, 1966, ch. 316, § 9-301; Laws, 1977,
ch.
452, § 14; Laws, 1986, ch. 343, § 1; Laws, 1996,
ch. 468, § 62, eff from and after July 1, 1996] and was enacted by
Laws, 2001, ch. 495, § 1, HB 1311, eff from and after January 1, 2002.
PREVIOUS VERSIONS: Pre-2001