Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 9-338 — Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information
N.Y. U.C.C. Law § 9-338
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 9--338. Priority of Security Interest or Agricultural Lien
Citator
N.Y. U.C.C. Law § 9-338 — Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information is in force in the current edition of the Code, and nothing recorded condemns it.
Section 9--338. Priority of Security Interest or Agricultural Lien
Perfected by Filed Financing Statement Providing
Certain Incorrect Information.
If a security interest or agricultural lien is perfected by a filed financing statement providing information described in Section 9--516(b)(5) which is incorrect at the time the financing statement is filed:
(1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.