Texas Business & Commerce Code

§ 9.330 — PRIORITY OF PURCHASER OF CHATTEL PAPER OR INSTRUMENT

BC § 9.330Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. C. PERFECTION AND PRIORITY

Statute text

(a)A purchaser of chattel paper has priority over a security interest in the chattel paper that 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)A purchaser of chattel paper has priority over a security interest in the chattel paper that 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)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

…

Legislative history

Acts 2021, 87th Leg., R.S., Ch. 739 (H.B. 4474), Sec. 7, eff. September 1, 2021. Acts 2021, 87th Leg., R.S., Ch. 739 (H.B. 4474), Sec. 8, eff. September 1, 2021.