Sec. 42a-9-317. Interests that take priority over or take free of security interest or agricultural lien.
Sec. 42a-9-317. Interests that take priority over or take free of security interest
or agricultural lien. (a) A security interest or agricultural lien is subordinate to the
rights of:
(1) A person entitled to priority under section 42a-9-322; and
(2) Except as otherwise provided in subsection (e) of this section, a person that
becomes a lien creditor before the earlier of the time:
(A) The security interest or agricultural lien is perfected; or
(B) One of the conditions specified in subdivision (3) of subsection (b) of section
42a-9-203 is met and a financing statement covering the collateral is filed.
(b) Except as otherwise provided in subsection (e) of this section, a buyer, other
than a secured party, of tangible chattel paper, tangible documents, goods, instruments
or a security certificate takes free of a security interest or agricultural lien if the buyer
gives value and receives delivery of the collateral without knowledge of the security
interest or agricultural lien and before it is perfected.
(c) Except as otherwise provided in subsection (e) of this section, a lessee of goods
takes free of a security interest or agricultural lien if the lessee gives value and receives
delivery of the collateral without knowledge of the security interest or agricultural lien
and before it is perfected.
(d) 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 other than a certificated security takes free of a security interest if the
licensee or buyer gives value without knowledge of the security interest and before it
is perfected.
(e) Except as otherwise provided in sections 42a-9-320 and 42a-9-321, if a person
files a financing statement with respect to a purchase-money security interest before or
within twenty days after the debtor receives delivery of the collateral, the security interest
takes priority over the rights of a buyer, lessee or lien creditor which arise between the
time the security interest attaches and the time of filing.
(1959, P.A. 133, S. 9-317; 1961, P.A. 116, S. 12; P.A. 01-132, S. 37; P.A. 04-64, S. 70.)
History: 1961 act corrected section heading; P.A. 01-132 replaced former provisions re contract or tort liability not
being imposed on the secured party for the debtor's acts or omissions with provisions re interests that take priority over
or take free of a security interest or agricultural lien; P.A. 04-64 made technical changes in Subsecs. (a)(2), (b) and (c),
added "tangible" in Subsec. (b) and added "electronic documents" in Subsec. (d) to conform to revisions made to article
7 by the same act.
Annotations to former section 42a-9-301:
Cited. 168 C. 152.
Subsec. (1):
Subdivision (a): Cited. 25 CS 336. Subdivision (b): Cited. 33 CS 616.