New York Uniform Commercial Code Law Section 9-318 - No Interest Retained in Right to Payment That Is Sold; Rights and Title of Seller of Account or Chattel Paper with Respect to Creditors and Purchasers

Section 9--318. No  Interest  Retained in Right to Payment That Is Sold;
                Rights and Title of Seller of Account or Chattel Paper
                with Respect to Creditors and Purchasers.
(a) Seller retains no interest. A debtor that  has  sold  an  account,
  chattel  paper, payment intangible, or promissory note does not retain a
  legal or equitable interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest  unperfected.
  For  purposes  of determining the rights of creditors of, and purchasers
  for value of an account or chattel paper from, a debtor that has sold an
  account or  chattel  paper,  while  the  buyer's  security  interest  is
  unperfected,  the  debtor  is  deemed  to  have  rights and title to the
  account or chattel paper identical to those the debtor sold.

Last modified: February 3, 2019