Texas Business & Commerce Code - Section 9.320. Buyers Of Goods
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Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 9.320. Buyers Of Goods
Section: 9.313 9.314 9.315 9.316 9.317 9.318 9.319 9.320 9.321 9.322 9.323 9.324 9.325 9.326 9.327
§ 9.320. BUYERS OF GOODS. (a) Except as otherwise
provided by Subsection (e), a buyer in ordinary course of business,
other than a person buying farm products from a person engaged in
farming operations, takes free of a security interest created by
the buyer's seller, even if the security interest is perfected and
the buyer knows of its existence.
(b) Except as otherwise provided in Subsection (e), a buyer
of goods from a person who used or bought the goods for use
primarily for personal, family, or household purposes takes free of
a security interest, even if perfected, if the buyer buys:
(1) without knowledge of the security interest;
(2) for value;
(3) primarily for the buyer's personal, family, or
household purposes; and
(4) before the filing of a financing statement
covering the goods.
(c) To the extent that it affects the priority of a security
interest over a buyer of goods under Subsection (b), the period of
effectiveness of a filing made in the jurisdiction in which the
seller is located is governed by Sections 9.316(a) and (b).
(d) A buyer in ordinary course of business buying oil, gas,
or other minerals at the wellhead or minehead or after extraction
takes free of an interest arising out of an encumbrance.
(e) Subsections (a) and (b) do not affect a security
interest in goods in the possession of the secured party under
Added by Acts 1999, 76th Leg., ch. 414, § 1.01, eff. July 1,
Last modified: August 11, 2007