1997 Minnesota Statutes

     336.9-307 Protection of buyers of goods. 

    (1) A buyer in ordinary course of business (subsection (9) 
 of section 336.1-201) takes free of a security interest created 
 by the seller even though the security interest is perfected and 
 even though the buyer knows of its existence.  

    (2) In the case of consumer goods, a buyer takes free of a 
 security interest even though perfected if buying without 
 knowledge of the security interest, for value and for personal, 
 family or household purposes unless prior to the purchase the 
 secured party has filed a financing statement covering such 
 goods. 

    (3) A buyer other than a buyer in ordinary course of 
 business (subsection (1) of this section) takes free of a 
 security interest to the extent that it secures future advances 
 made after the secured party acquires knowledge of the purchase, 
 or more than 45 days after the purchase, whichever first occurs, 
 unless made pursuant to a commitment entered into without 
 knowledge of the purchase and before the expiration of the 
 45-day period. 

    HIST: 1965 c 811 s 336.9-307; 1976 c 135 s 19; 1985 c 233 s 7; 
 1985 c 276 s 10; 1985 c 306 s 23; 1986 c 322 s 3; 1986 c 444