§ 12A-1-9-331. Priority of rights of purchasers of instruments, documents, and securities under other articles; priority of interests in financial assets and security entitlements under Article 8  


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  • PRIORITY OF RIGHTS OF PURCHASERS OF INSTRUMENTS, DOCUMENTS,

    AND SECURITIES UNDER OTHER ARTICLES; PRIORITY OF INTERESTS

    IN FINANCIAL ASSETS AND SECURITY ENTITLEMENTS UNDER ARTICLE 8

    (a)  This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security.  These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in Articles 3, 7, and 8 of this title.

    (b)  This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Article 8 of this title.

    (c)  Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b) of this section.

Added by Laws 2000, c. 371, § 58, eff. July 1, 2001.