BIOC Flashcards
BIOC
Takes FREE of security interest created by buyer’s seller, even if security interest is perfected and buyer knows of its existence
*Not IOC if buyer knows that sale is in violation of a term in security agreement
BNIOC
Takes collateral subject to PERFECTED interest; takes free from UNPERFECTED interests unless they know of the security interest when they give value or take delivery
Consumer to consumer sale (must be consumer goods in both hands of buyer and seller)
Buyer takes free of security interest even though it’s perfected if buyer buys:
(1) without knowledge of security interest
(2) for value
(3) for the buyer’s own personal, family, household purposes
(4) before financing statement covering goods has been filed
BIOC Requirement
Good faith
No knowledge that sale violates rights of another person (can know about existence of security agreement)
Ordinary course of business (seller regularly sells these goods)