§ 6A-9-338 - Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information. - Rhode-island Statutes

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SECTION 6A-9-338

§ 6A-9-338 Priority of security interestor agricultural lien perfected by filed financing statement providing certainincorrect information. – If a security interest or agricultural lien is perfected by a filed financingstatement providing information described in § 6A-9-516(b)(5) which isincorrect at the time the financing statement is filed:

(1) The security interest or agricultural lien is subordinateto a conflicting perfected security interest in the collateral to the extentthat the holder of the conflicting security interest gives value in reasonablereliance upon the incorrect information; and

(2) A purchaser, other than a secured party, of thecollateral takes free of the security interest or agricultural lien to theextent that, in reasonable reliance upon the incorrect information, thepurchaser gives value and, in the case of tangible chattel paper, tangibledocuments, goods, instruments, or a security certificate, receives delivery ofthe collateral.

State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-9 > 6a-9-338

SECTION 6A-9-338

§ 6A-9-338 Priority of security interestor agricultural lien perfected by filed financing statement providing certainincorrect information. – If a security interest or agricultural lien is perfected by a filed financingstatement providing information described in § 6A-9-516(b)(5) which isincorrect at the time the financing statement is filed:

(1) The security interest or agricultural lien is subordinateto a conflicting perfected security interest in the collateral to the extentthat the holder of the conflicting security interest gives value in reasonablereliance upon the incorrect information; and

(2) A purchaser, other than a secured party, of thecollateral takes free of the security interest or agricultural lien to theextent that, in reasonable reliance upon the incorrect information, thepurchaser gives value and, in the case of tangible chattel paper, tangibledocuments, goods, instruments, or a security certificate, receives delivery ofthe collateral.

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State Codes and Statutes

Statutes > Rhode-island > Title-6a > Chapter-6a-9 > 6a-9-338

SECTION 6A-9-338

§ 6A-9-338 Priority of security interestor agricultural lien perfected by filed financing statement providing certainincorrect information. – If a security interest or agricultural lien is perfected by a filed financingstatement providing information described in § 6A-9-516(b)(5) which isincorrect at the time the financing statement is filed:

(1) The security interest or agricultural lien is subordinateto a conflicting perfected security interest in the collateral to the extentthat the holder of the conflicting security interest gives value in reasonablereliance upon the incorrect information; and

(2) A purchaser, other than a secured party, of thecollateral takes free of the security interest or agricultural lien to theextent that, in reasonable reliance upon the incorrect information, thepurchaser gives value and, in the case of tangible chattel paper, tangibledocuments, goods, instruments, or a security certificate, receives delivery ofthe collateral.