BIOC Flashcards

1
Q

BIOC

A

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

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2
Q

BNIOC

A

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

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3
Q

Consumer to consumer sale (must be consumer goods in both hands of buyer and seller)

A

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

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4
Q

BIOC Requirement

A

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)

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