§ 25-9-337. Priority of security interests in goods covered by certificate of title. - North Carolina Statutes

§25‑9‑337.  Priority of security interests in goods covered bycertificate of title.

If, while a security interestin goods is perfected by any method under the law of another jurisdiction, thisState issues a certificate of title that does not show that the goods aresubject to the security interest or contain a statement that they may besubject to security interests not shown on the certificate:

(1)        A buyer of thegoods, other than a person in the business of selling goods of that kind, takesfree of the security interest if the buyer gives value and receives delivery ofthe goods after issuance of the certificate and without knowledge of thesecurity interest; and

(2)        The securityinterest is subordinate to a conflicting security interest in the goods thatattaches, and is perfected under G.S. 25‑9‑311(b), after issuanceof the certificate and without the conflicting secured party's knowledge of thesecurity interest. (1945, c. 196, s. 2; 1957, c. 564; 1965, c. 700, s. 1;1967, c. 562, s. 1; 1975, c. 862, s. 7; 1989 (Reg. Sess., 1990), c. 1024, s.8(e), (f); 1997‑181, s. 2; 1999‑73, s. 4(a), (b); 2000‑169,s. 1.)