§ 25-9-320. Buyer of goods. - North Carolina Statutes

§25‑9‑320.  Buyer of goods.

(a)        Buyer in ordinarycourse of business. – Except as otherwise provided in subsection (e) of thissection, a buyer in ordinary course of business, other than a person buyingfarm products from a person engaged in farming operations, takes free of asecurity interest created by the buyer's seller, even if the security interestis perfected and the buyer knows of its existence.

(b)        Buyer of consumergoods. – Except as otherwise provided in subsection (e) of this section, abuyer of goods from a person who used or bought the goods for use primarily forpersonal, family, or household purposes takes free of a security interest, evenif perfected, if the buyer buys:

(1)        Without knowledge ofthe security interest;

(2)        For value;

(3)        Primarily for thebuyer's personal, family, or household purposes; and

(4)        Before the filing ofa financing statement covering the goods.

(c)        Effectiveness offiling for subsection (b). – To the extent that it affects the priority of asecurity interest over a buyer of goods under subsection (b) of this section,the period of effectiveness of a filing made in the jurisdiction in which theseller is located is governed by G.S. 25‑9‑316(a) and (b).

(d)        Buyer in ordinarycourse of business at wellhead or minehead. – A buyer in ordinary course ofbusiness buying oil, gas, or other minerals at the wellhead or minehead orafter extraction takes free of an interest arising out of an encumbrance.

(e)        Possessory securityinterest not affected. – Subsections (a) and (b) of this section do not affecta security interest in goods in the possession of the secured party under G.S.25‑9‑313. (1945, c. 182, s. 4; 1955, c. 386, s. 2; 1961, c. 574;1965, c. 700, s. 1; 1975, c. 862, s. 7.; 2000‑169, s. 1.)