California Commercial Code

§ 9330

COM § 9330 Effective Jan 1, 2024Div. 9 · Ch. 3

Statute text

(a)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 both of the following conditions are satisfied:

(1)In good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under Section 9105 of each authoritative electronic copy of the record evidencing the chattel paper.

(2)The authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser.

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Legislative history

Amended by Stats. 2023, Ch. 210, Sec. 51. (SB 95) Effective January 1, 2024.