70A-9a-317 - Interests that take priority over or take free of security interest or agricultural lien.
70A-9a-317. Interests that take priority over or take free of security interest oragricultural lien.
(1) A security interest or agricultural lien is subordinate to the rights of:
(a) a person entitled to priority under Section 70A-9a-322; and
(b) except as otherwise provided in Subsection (5), a person that becomes a lien creditorbefore the earlier of the time:
(i) the security interest or agricultural lien is perfected; or
(ii) one of the conditions specified in Subsection 70A-9a-203(2)(c) is met and afinancing statement covering the collateral is filed.
(2) Except as otherwise provided in Subsection (5), a buyer, other than a secured party,of tangible chattel paper, tangible documents, goods, instruments, or a security certificate takesfree of a security interest or agricultural lien if the buyer gives value and receives delivery of thecollateral without knowledge of the security interest or agricultural lien and before it is perfected.
(3) Except as otherwise provided in Subsection (5), a lessee of goods takes free of asecurity interest or agricultural lien if the lessee gives value and receives delivery of the collateralwithout knowledge of the security interest or agricultural lien and before it is perfected.
(4) 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 otherthan a certificated security takes free of a security interest if the licensee or buyer gives valuewithout knowledge of the security interest and before it is perfected.
(5) Except as otherwise provided in Sections 70A-9a-320 and 70A-9a-321, if a personfiles a financing statement with respect to a purchase-money security interest before or within 20days after the debtor receives delivery of the collateral, the security interest takes priority over therights of a buyer, lessee, or lien creditor which arise between the time the security interestattaches and the time of filing.
Amended by Chapter 42, 2006 General Session