2006 New York Code - Priority Of Purchaser Of Chattel Paper Or Instrument

 
  Section 9--330. Priority of Purchaser of Chattel Paper or Instrument.
    (a) Purchaser's   priority:   security   interest  claimed  merely  as
  proceeds.  A purchaser of chattel paper has  priority  over  a  security
  interest  in  the  chattel  paper which is claimed merely as proceeds of
  inventory subject to a security interest if:
         (1) in good faith and in the ordinary course of  the  purchaser's
             business,  the purchaser gives new value and takes possession
             of the chattel paper or obtains control of the chattel  paper
             under Section 9--105; and
         (2) the chattel paper does not indicate that it has been assigned
             to an identified assignee other than the purchaser.
    (b) Purchaser's  priority:  other  security  interests. A purchaser of
  chattel paper has priority over a security interest in the chattel paper
  which is claimed other than merely as proceeds of inventory subject to a
  security interest if the purchaser gives new value and takes  possession
  of  the  chattel  paper  or  obtains  control of the chattel paper under
  Section 9--105 in good faith, in the ordinary course of the  purchaser's
  business, and without knowledge that the purchase violates the rights of
  the secured party.
    (c) Chattel   paper   purchaser's  priority  in  proceeds.  Except  as
  otherwise provided in Section 9--327, a  purchaser  having  priority  in
  chattel  paper under subsection (a) or (b) also has priority in proceeds
  of the chattel paper to the extent that:
         (1) Section 9--322 provides for priority in the proceeds; or
         (2) the proceeds consist of the specific  goods  covered  by  the
             chattel paper or cash proceeds of the specific goods, even if
             the   purchaser's   security  interest  in  the  proceeds  is
             unperfected.
    (d) Instrument purchaser's priority. Except as otherwise  provided  in
  Section  9--331(a),  a  purchaser  of  an instrument has priority over a
  security interest in the instrument perfected by  a  method  other  than
  possession  if  the  purchaser  gives  value and takes possession of the
  instrument in  good  faith  and  without  knowledge  that  the  purchase
  violates the rights of the secured party.
    (e) Holder  of  purchase-money  security interest gives new value. For
  purposes of subsections (a) and (b),  the  holder  of  a  purchase-money
  security  interest  in  inventory  gives  new  value  for  chattel paper
  constituting proceeds of the inventory.
    (f) Indication  of  assignment  gives  knowledge.  For   purposes   of
  subsections  (b)  and  (d),  if chattel paper or an instrument indicates
  that it has been assigned to an identified secured party other than  the
  purchaser,  a purchaser of the chattel paper or instrument has knowledge
  that the purchase violates the rights of the secured party.