§490:9-338 Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information. If a security interest or agricultural lien is perfected by a filed financing statement providing information described in section 490:9-516(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. [L 2000, c 241, pt of §1; am L 2004, c 163, §32]
Section: Previous 490-9-331 490-9-332 490-9-333 490-9-334 490-9-335 490-9-336 490-9-337 490-9-338 490-9-339 490-9-340 490-9-341 490-9-342 490-9-401 490-9-402 490-9-403 NextLast modified: October 27, 2016