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Texas Business & Commerce Code

§ 9.317 — INTERESTS THAT TAKE PRIORITY OVER OR TAKE FREE OF SECURITY INTEREST OR AGRICULTURAL LIEN

BC § 9.317Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. C. PERFECTION AND PRIORITY

Statute text

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(a)A security interest or agricultural lien is subordinate to the rights of:
(1)a person entitled to priority under Section 9.322; and
(2)except as otherwise provided in Subsection (e), a person that becomes a lien creditor before the earlier of the time:
(A)the security interest or agricultural lien is perfected; or
(B)one of the conditions specified in Section 9.203(b)(3) is met and a financing statement covering the collateral is filed.
(b)Except as otherwise provided in Subsection (e), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.

Legislative history

Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 28, eff. September 1, 2005. Acts 2011, 82nd Leg., R.S., Ch. 67 (S.B. 782), Sec. 7, eff. July 1, 2013.

Source: Texas Business & Commerce Code § 9.317 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.