New York Uniform Commercial Code Law Section 9-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

Section 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
  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.

Last modified: February 3, 2019