400.9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information. - Missouri Statutes

Priority of security interest or agricultural lien perfected by filedfinancing statement providing certain incorrect information.

400.9-338. If a security interest or agricultural lien is perfectedby a filed financing statement providing information described in section400.9-516(b)(5) which is incorrect at the time the financing statement isfiled:

(1) The security interest or agricultural lien is subordinate to aconflicting perfected security interest in the collateral to the extentthat the holder of the conflicting security interest gives value inreasonable reliance upon the incorrect information; and

(2) A purchaser, other than a secured party, of the collateral takesfree of the security interest or agricultural lien to the extent that, inreasonable reliance upon the incorrect information, the purchaser givesvalue and, in the case of chattel paper, documents, goods, instruments, ora security certificate, receives delivery of the collateral.

(L. 2001 S.B. 288)

Effective 7-01-01