As between a secured party and a purchaser, who wins? Are there any exceptions?
Generally, secured party prevails.
- Exceptions (5):
- --D has permission to sell.
--Secured party unperfected, buyer gives value, buyer receives delivery item, and buyer has no knowledge of SI at time of delivery
--Buyer in the Ordinary Course of Business: (a) good faith, (b) no knowledge of SI violation, (c) goods not farm products, (d) in business of selling goods of that kind, (e) SI created by seller, (f) C not perfected by possession
--Consumer purchase of consumer goods: (a) consumer good in seller hand, (b) consumer good in buyer’s hand, (c) buyer has no knowledge of SI, (d) buyer pays value, (e) C not perfected by possession.
--HDC of negotiable instrument will win over earlier perfected interests in the negotiable instrument.