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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

009

:
Secured Transactions











 

§

9-320. Buyer of goods

(a) Except as

otherwise provided in subsection (e), a buyer in ordinary course of business,

other than a person buying farm products from a person engaged in farming

operations, takes free of a security interest created by the buyer's seller,

even if the security interest is perfected and the buyer knows of its

existence.

(b) Except as

otherwise provided in subsection (e), a buyer of goods from a person who used

or bought the goods for use primarily for personal, family, or household

purposes takes free of a security interest, even if perfected, if the buyer

buys:

(1) without

knowledge of the security interest;

(2) for value;

(3) primarily

for the buyer's personal, family, or household purposes; and

(4) before the

filing of a financing statement covering the goods.

(c) To the

extent that it affects the priority of a security interest over a buyer of

goods under subsection (b), the period of effectiveness of a filing made in the

jurisdiction in which the seller is located is governed by section 9-316(a) and

(b).

(d) A buyer in

ordinary course of business buying oil, gas, or other minerals at the wellhead

or minehead or after extraction takes free of an interest arising out of an

encumbrance.

(e) Subsections

(a) and (b) do not affect a security interest in goods in the possession of the

secured party under section 9-313. (Added 1999, No. 106 (Adj. Sess.), § 2, eff.

July 1, 2001.)