70A-9a-338. Priority of security interest or agricultural lien perfected by filed
financing statement providing certain incorrect information.
If a security interest or agricultural lien is perfected by a filed financing statement
providing information described in Subsection 70A-9a-516(2)(e) which is incorrect at the time
the financing statement is filed:
(1) the security interest or agricultural lien is subordinate to a conflicting perfected
security interest in the collateral to the extent that the holder of the conflicting security interest
gives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free of the security
interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect
information, the purchaser gives value and, in the case of tangible chattel paper, tangible
documents, goods, instruments, or a security certificate, receives delivery of the collateral.
Amended by Chapter 42, 2006 General Session
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Last revised: Thursday, May 28, 2009