8.9A-338 - A-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information.
§ 8.9A-338. Priority of security interest or agricultural lien perfected byfiled financing statement providing certain incorrect information.
If a security interest or agricultural lien is perfected by a filed financingstatement providing information described in § 8.9A-516 (b) (5) which isincorrect at the time the financing statement is filed:
(1) the security interest or agricultural lien is subordinate to aconflicting perfected security interest in the collateral to the extent thatthe holder of the conflicting security interest gives value in reasonablereliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free ofthe security interest or agricultural lien to the extent that, in reasonablereliance upon the incorrect information, the purchaser gives value and, inthe case of tangible chattel paper, tangible documents, goods, instruments,or a security certificate, receives delivery of the collateral.
(2000, c. 1007; 2004, c. 200.)