Statutes > District of Columbia Statutes > Division V - Local Business Affairs (TITLE 25 to TITLE 37) > TITLE 28 - COMMERCIAL INSTRUMENTS AND TRANSACTIONS (SUBTITLE I to SUBTITLE II) > Appendix - (Article 9 to Article 11) > Article 9 - Secured Transactions; Sales of Accounts and Chattel Paper (Part 1 to Part 5) > Part 3 - Rights of Third Parties; Perfected and Unperfected Security Interests; Rules of Priority (Section 28:9-301 to Section 28:9-318) > Section 28:9-308 - Purchase of chattel paper and instruments

Section 28:9-308 - Purchase of chattel paper and instruments

Purchase of chattel paper and instruments

A purchaser of chattel paper or an instrument who gives new value and takes possession of it in the ordinary course of his business has priority over a security interest in the chattel paper or instrument

(a) which is perfected under section 28:9-304 (permissive filing and temporary perfection) or under section 28:9-306 (perfection as to proceeds) if he acts without knowledge that the specific paper or instrument is subject to a security interest; or

(b) which is claimed merely as proceeds of inventory subject to a security interest (section 28:9-306) even though he knows that the specific paper or instrument is subject to the security interest.

CREDIT(S)

(Dec. 30, 1963, 77 Stat. 758, Pub. L. 88-243, § 1; Mar. 16, 1982, D.C. Law 4-85, § 25, 29 DCR 309.)

HISTORICAL AND STATUTORY NOTES

Prior Codifications
1981 Ed., § 28:9-308.
1973 Ed., § 28:9-308.
Legislative History of Laws
For legislative history of D.C. Law 4-85, see Historical and Statutory Notes following § 28:9-102.
For Law 13-201, see notes following § 28:9-101.

Current through September 13, 2012