Page:United States Statutes at Large Volume 77.djvu/790

 758

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

§ 28:9—308. Purchase of chattel paper and non-negotiable instruments A purcliaser of chattel paper or a non-negotiable instrument who gives new value and takes possession of it in the ordinary course of his business and without knowledge that the specific paper or instrument is subject to a security interest has priority over a security interest which is perfected under section 28:9—J504 (permissive filing and temporary perfection). A purchaser of chattel paper who gives new value and takes possession of it in the ordinary course of his business has priority over a security interest in chattel paper which is claimed merely as proceeds of inventory subject to a security interest (section 28:9—8(>), even though he knows that the specific paper is subject to the security interest. §28:9—309. Protection of purchasers of instruments and documents Nothing in this article limits the rights of a holder in due course of a negotiable instrument (section 28:8—802) or a holder to whom a negotiable document of title lias been duly negotiated (section 28:7— 501) or a bona fide purchaser of a security (section 28:S—801) and such holders or purchasers take priority over an earlier secur ty interest even though perfected. Filing under this article does not constitute notice of the security interest to such holders or purchasers. §28:9—310. Priority of certain liens arising by operation of law When a person in the ordinary course of his business furnishes services or materials with respect to goods subject to a security interest, a lien upon goods in the possession of such person given by statute or rule of law for such materials or services takes pririty over a perfected security interest un'ess the lien is statutory and the statute expressly provides otherwise. §28:9—311. Alienability of debtor's rights: judicial process The debtor's rights in collateral may be voluntarily or involuntarily transferred (by way of sale, creation of a security interest, attachment, levy, garnishment or other judicial process) notwithstanding a provision in the security agreement prohibiting any transfer or making the transfer constitute a default. § 28:9—312. Priorities among conflicting security interests in the same collateral (1) The rules of priority stated in the following sections shall govern where applicable: section 28:4—208 with respect to the security interest of collecting banks in items being collected, accompanying documents and proceeds; section 28:9—801 on certain priorities: section 28:9—304 on goods covered by documents; section 28:9—8H on proceeds and repossessions; section 28:9—307 on buyers of goods; section 28:9—308 on possessory against non-possessory interests in chattel paper or non-negotiable instruments; section 28:9—809 on security interests in negotiable instruments, documents or securities; section 28:9—310 on priorities between perfected security interests and liens by operation of law; section 28:9—313 on security interests in fixtures as against interests in real estate; section 28:9—814 on security interests in accessions as against interest in goods; section 28:9—315 on conflicting security interests where goods lose their identity or become part of a product; and section 28:9—316 on contractual subordination. (2) A perfected security interest in crops for new value given to enable the debtor to produce the crops during the production season and given not more than three months before the crops become growing crops by planting or otherwise takes priority over an earlier perfected security interest to the extent that such earlier interest

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