Priorities in a Nutshell Flashcards
Excluding investment property and nonconsumer deposit accounts in which the party with control generally has priority, the ranking is as follows:
…
(1)
Buyers in the ordinary course of business who do not know the sale is in violation of the security interest.
(2)
Holders in due course and the like of negotiable instruments
(3)
Transferees of funds from deposit accounts
(4)
Certain purchasers of chattel paper or instruments who have possession or control
(5)
Possessory lienholders
(6)
Article 2 claimants with possession of goods
(7)
PMSIs
(8)
Perfected security interests and liens that have attached to the collateral.
- as between perfected security interests in the same collateral, the first to file or perfect has priority;
- As between a perfected security interest and a lien, the lien has priority if it was created before the security interest was filed or perfected. Otherwise, the perfected security interest has priority
(9)
Purchasers of collateral who buy for value and receive delivery without notice of any unperfected security interest.
(10)
Unperfected security interests
(11)
The debtor