400.9-321. Licensee of general intangible and lessee of goods in ordinary course of business. - Missouri Statutes

Licensee of general intangible and lessee of goods in ordinary courseof business.

400.9-321. (a) In this section, "licensee in ordinary course ofbusiness" means a person that becomes a licensee of a general intangible ingood faith, without knowledge that the license violates the rights ofanother person in the general intangible, and in the ordinary course from aperson in the business of licensing general intangibles of that kind. Aperson becomes a licensee in the ordinary course if the license to theperson comports with the usual or customary practices in the kind ofbusiness in which the licensor is engaged or with the licensor's own usualor customary practices.

(b) A licensee in ordinary course of business takes its rights undera nonexclusive license free of a security interest in the generalintangible created by the licensor, even if the security interest isperfected and the licensee knows of its existence.

(c) A lessee in ordinary course of business takes its leaseholdinterest free of a security interest in the goods created by the lessor,even if the security interest is perfected and the lessee knows of itsexistence.

(L. 2001 S.B. 288)

Effective 7-01-01