47-9338

47-9338. 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 that is described in section 47-9516, subsection B,
paragraph 5 and that 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 on 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 on 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.