1999 Minnesota Statutes

     336.9-308 Purchase of chattel paper and instruments. 

    A purchaser of chattel paper or an instrument who gives new 
 value and takes possession of it in the ordinary course of 
 business has priority over a security interest in the chattel 
 paper or instrument 

    (a) which is perfected under section 336.9-304 (permissive 
 filing and temporary perfection) or under section 336.9-306 
 (perfection as to proceeds) if acting without knowledge that the 
 specific paper or instrument is subject to a security interest; 
 or 

    (b) which is claimed merely as proceeds of inventory 
 subject to a security interest (section 336.9-306) even though 
 the purchaser knows that the specific paper or instrument is 
 subject to the security interest. 

    HIST: 1965 c 811 s 336.9-308; 1976 c 135 s 20; 1986 c 444