New York Uniform Commercial Code Law Section 9-317 - Interests That Take Priority over or Take Free of Security Interest or Agricultural Lien.

Section 9--317. Interests  That  Take  Priority  over  or  Take  Free of
                Security Interest or Agricultural Lien.
(a) Conflicting security interests and rights  of  lien  creditors.  A
  security interest or agricultural lien is subordinate to the rights of:
     (1) a person entitled to priority under Section 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 of the conditions specified in  Section  9--203(b)(3)
             is  met and a financing statement covering the collateral
             is filed.
(b) Buyers that receive delivery.  Except  as  otherwise  provided  in
  subsection (e), a buyer, other than a secured party, of tangible chattel
  paper,   tangible  documents,  goods,  instruments,  or  a  certificated
  security 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) Lessees that receive delivery. 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) Licensees  and  buyers  of  certain  collateral.  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.
(e) Purchase-money  security interest. Except as otherwise provided in
  Sections 9--320 and 9--321, if a person files a financing statement with
  respect to a purchase-money security interest before or within  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. The preceding sentence does not apply to cooperative
  interests.

Last modified: February 3, 2019