(a) Except as otherwise provided in (e) of this section, a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.
(b) Except as otherwise provided in (e) of this section, a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, 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) To the extent that it affects the priority of a security interest over a buyer of goods under (b) of this section, the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by AS 45.29.316(a) and (b).
(d) A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
(e) The provisions of (a) and (b) of this section do not affect a security interest in goods in the possession of the secured party under AS 45.29.313.
Structure Alaska Statutes
Chapter 29. Secured Transactions
Article 3. Perfection and Priority.
Sec. 45.29.301. Law governing perfection and priority of security interests.
Sec. 45.29.302. Law governing perfection and priority of agricultural liens.
Sec. 45.29.304. Law governing perfection and priority of security interests in deposit accounts.
Sec. 45.29.305. Law governing perfection and priority of security interests in investment property.
Sec. 45.29.307. Location of debtor.
Sec. 45.29.308. When security interest or agricultural lien is perfected; continuity of perfection.
Sec. 45.29.309. Security interest perfected upon attachment.
Sec. 45.29.314. Perfection by control.
Sec. 45.29.315. Secured party's rights on disposition of collateral and in proceeds.
Sec. 45.29.316. Continued perfection of security interest following change in governing law.
Sec. 45.29.319. Rights and title of consignee with respect to creditors and purchasers.
Sec. 45.29.320. Buyer of goods.
Sec. 45.29.321. Licensee of general intangible and lessee of goods in ordinary course of business.
Sec. 45.29.323. Future advances.
Sec. 45.29.324. Priority of purchase money security interests.
Sec. 45.29.325. Priority of security interests in transferred collateral.
Sec. 45.29.326. Priority of security interests created by new debtor.
Sec. 45.29.327. Priority of security interests in deposit account.
Sec. 45.29.328. Priority of security interests in investment property.
Sec. 45.29.329. Priority of security interests in letter-of-credit right.
Sec. 45.29.330. Priority of purchaser of chattel paper or instrument.
Sec. 45.29.332. Transfer of money; transfer of funds from deposit account.
Sec. 45.29.333. Priority of certain liens arising by operation of law.
Sec. 45.29.334. Priority of security interests in fixtures and crops.
Sec. 45.29.336. Commingled goods.
Sec. 45.29.337. Priority of security interests in goods covered by certificate of title.
Sec. 45.29.339. Priority subject to subordination.
Sec. 45.29.340. Effectiveness of right of recoupment or setoff against deposit account.
Sec. 45.29.341. Bank's rights and duties with respect to deposit account.
Sec. 45.29.342. Bank's right to refuse to enter into or disclose existence of control agreement.