47-9317

47-9317. Interests that take priority over or
take free of security interest or agricultural lien

A. A security interest or agricultural lien is subordinate to the rights of:

1. A person entitled to priority under section 47-9322; and

2. Except as otherwise provided in subsection E of this section, 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 47-9203, subsection B, paragraph 3
is met and a financing statement covering the collateral is filed.

B. Except as otherwise provided in subsection E of this section, a buyer, other
than a secured party, of tangible chattel paper, tangible documents, goods, instruments
or a security certificate 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. Except as otherwise provided in subsection E of this section, 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. 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. Except as otherwise provided in sections 47-9320 and 47-9321, if a person files
a financing statement with respect to a purchase money security interest before or within
twenty days after the debtor receives delivery of the collateral, the security interest
takes priority over the rights of a buyer, lessee or lien creditor that arise between the
time the security interest attaches and the time of filing.