8.9A-320 - A-320. Buyer of goods. - Virginia Statutes

§ 8.9A-320. Buyer of goods.

(a) Buyer in ordinary course of business. Except as otherwise provided insubsection (e), a buyer in ordinary course of business, other than a personbuying farm products from a person engaged in farming operations, takes freeof a security interest created by the buyer's seller, even if the securityinterest is perfected and the buyer knows of its existence.

(b) Buyer of consumer goods. Except as otherwise provided in subsection (e),a buyer of goods from a person who used or bought the goods for use primarilyfor personal, family, or household purposes takes free of a securityinterest, even if perfected, if the buyer buys:

(1) without knowledge of the security interest;

(2) for value;

(3) primarily for the buyer's personal, family, or household purposes; and

(4) before the filing of a financing statement covering the goods.

(c) Effectiveness of filing for subsection (b). To the extent that it affectsthe priority of a security interest over a buyer of goods under subsection(b), the period of effectiveness of a filing made in the jurisdiction inwhich the seller is located is governed by subsections (a) and (b) of §8.9A-316.

(d) Buyer in ordinary course of business at wellhead or minehead. A buyer inordinary course of business buying oil, gas, or other minerals at thewellhead or minehead or after extraction takes free of an interest arisingout of an encumbrance.

(e) Possessory security interest not affected. Subsections (a) and (b) do notaffect a security interest in goods in the possession of the secured partyunder § 8.9A-313.

(Code 1950, §§ 6-558, 55-146; 1956, c. 602; 1964, c. 219, § 8.9-307; 1973, c.509; 1986, c. 484; 1987, c. 657; 2000, c. 1007.)