1999 Minnesota Statutes

     336.9-301 Persons who take priority over unperfected 
  security interests; right of "lien creditor." 

    (1) Except as otherwise provided in subsection (2), an 
 unperfected security interest is subordinate to the rights of 

    (a) persons entitled to priority under section 336.9-312; 

    (b) a person who becomes a lien creditor before the 
 security interest is perfected; 

    (c) in the case of goods, instruments, documents, and 
 chattel paper, a person who is not a secured party and who is a 
 transferee in bulk or other buyer not in ordinary course of 
 business, or is a buyer of farm products in the ordinary course 
 of business, to the extent that the person gives value and 
 receives delivery of the collateral without knowledge of the 
 security interest and before it is perfected; 

    (d) in the case of accounts, general intangibles, and 
 investment property, a person who is not a secured party and who 
 is a transferee to the extent that the person gives value 
 without knowledge of the security interest and before it is 
 perfected. 

    (2) If the secured party files with respect to a purchase 
 money security interest before or within 20 days after the 
 debtor receives possession of the collateral, the secured party 
 takes priority over the rights of a transferee in bulk or of a 
 lien creditor which arise between the time the security interest 
 attaches and the time of filing. 

    (3) A "lien creditor" means a creditor who has acquired a 
 lien on the property involved by attachment, levy or the like 
 and includes an assignee for benefit of creditors from the time 
 of assignment, and a trustee in bankruptcy from the date of the 
 filing of the petition or a receiver in equity from the time of 
 appointment. 

    (4) A person who becomes a lien creditor while a security 
 interest is perfected takes subject to the security interest 
 only to the extent that it secures advances made before the 
 person becomes a lien creditor or within 45 days thereafter or 
 made without knowledge of the lien or pursuant to a commitment 
 entered into without knowledge of the lien. 

    HIST: 1965 c 811 s 336.9-301; 1976 c 135 s 14; 1983 c 50 s 1; 
 1986 c 444; 1995 c 194 art 2 s 7