§ 25-9-317. Interests that take priority over or take free of security interest or agricultural lien. - North Carolina Statutes

SUBPART 3. Priority.

§ 25‑9‑317. Interests that take priority over or take free of security interest oragricultural lien.

(a)        Conflictingsecurity interests and rights of lien creditors. – A security interest oragricultural lien is subordinate to the rights of:

(1)        A person entitled topriority under G.S. 25‑9‑322; and

(2)        Except as otherwiseprovided in subsection (e) of this section, a person that becomes a liencreditor before the earlier of the time:

a.         The securityinterest or agricultural lien is perfected; or

b.         One of theconditions specified in G.S. 25‑9‑203(b)(3) is met and a financingstatement covering the collateral is filed.

(b)        Buyers that receivedelivery. – Except as otherwise provided in subsection (e) of this section, abuyer, other than a secured party, of tangible chattel paper, tangibledocuments, goods, instruments, or a security certificate takes free of asecurity interest or agricultural lien if the buyer gives value and receivesdelivery of the collateral without knowledge of the security interest oragricultural lien and before it is perfected.

(c)        Lessees thatreceive delivery. – Except as otherwise provided in subsection (e) of thissection, a lessee of goods takes free of a security interest or agriculturallien if the lessee gives value and receives delivery of the collateral withoutknowledge of the security interest or agricultural lien and before it isperfected.

(d)        Licensees andbuyers of certain collateral. – A licensee of a general intangible or a buyer,other than a secured party, of accounts, electronic chattel paper, electronicdocuments, general intangibles, or investment property other than acertificated security takes free of a security interest if the licensee orbuyer gives value without knowledge of the security interest and before it isperfected.

(e)        Purchase‑moneysecurity interest. – Except as otherwise provided in G.S. 25‑9‑320and G.S. 25‑9‑321, if a person files a financing statement withrespect to a purchase‑money security interest before or within 20 daysafter the debtor receives delivery of the collateral, the security interesttakes priority over the rights of a buyer, lessee, or lien creditor which arisebetween the time the security interest attaches and the time of filing. (1945, c. 182, s. 4; c. 196,s. 4; 1955, c. 386, s. 2; 1961, c. 574; 1965, c. 700, s. 1; 1975, c. 862, s. 7;1979, c. 404, s. 1; 1997‑181, s. 8; 2000‑169, s. 1; 2006‑112,s. 53.)