8.9A-318 - A-318. No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.
§ 8.9A-318. No interest retained in right to payment that is sold; rights andtitle of seller of account or chattel paper with respect to creditors andpurchasers.
(a) Seller retains no interest. A debtor that has sold an account, chattelpaper, payment intangible, or promissory note does not retain a legal orequitable interest in the collateral sold.
(b) Deemed rights of debtor if buyer's security interest unperfected. Forpurposes of determining the rights of creditors of, and purchasers for valueof an account or chattel paper from, a debtor that has sold an account orchattel paper, while the buyer's security interest is unperfected, the debtoris deemed to have rights and title to the account or chattel paper identicalto those the debtor sold.
(2000, c. 1007.)