47-9320

47-9320. Buyer of goods

A. Except as otherwise provided in subsection E of this section, a buyer in
ordinary course of business, other than a person buying farm products from a person
engaged in farming operations, takes free of a security interest created by the buyer's
seller, even if the security interest is perfected and the buyer knows of its existence.

B. Except as otherwise provided in subsection E of this section, a buyer of goods
from a person who used or bought the goods for use primarily for personal, family or
household purposes takes free of a security interest, even if perfected, if the buyer
buys:

1. Without knowledge of the security interest;

2. For value;

3. Primarily for the buyer's personal, family or household purposes; and

4. Before the filing of a financing statement covering the goods.

C. To the extent that it affects the priority of a security interest over a buyer
of goods under subsection B of this section, the period of effectiveness of a filing made
in the jurisdiction in which the seller is located is governed by section 47-9316,
subsections A and B.

D. A buyer in ordinary course of business buying oil, gas or other minerals at the
wellhead or minehead or after extraction takes free of an interest arising out of an
encumbrance.

E. Subsections A and B of this section do not affect a security interest in goods
in the possession of the secured party under section 47-9313.