400.9-318. No interest retained in right to payment that is sold--rights and title of seller of account or chattel paper with respect to creditors and purchasers. - Missouri Statutes

No interest retained in right to payment that is sold--rights andtitle of seller of account or chattel paper with respect to creditorsand purchasers.

400.9-318. (a) A debtor that has sold an account, chattel paper,payment intangible, or promissory note does not retain a legal or equitableinterest in the collateral sold.

(b) For purposes of determining the rights of creditors of, andpurchasers for value of an account or chattel paper from, a debtor that hassold an account or chattel paper, while the buyer's security interest isunperfected, the debtor is deemed to have rights and title to the accountor chattel paper identical to those the debtor sold.

(L. 1963 p. 503 § 9-318, A.L. 1988 S.B. 583, A.L. 2001 S.B. 288)

Effective 7-01-01