(a) Except as otherwise provided in subsection (e), 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 subsection (e), 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 subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by § 4-9-316(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) Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under § 4-9-313.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 9 - Secured Transactions
Part 3 - Perfection and Priority
§ 4-9-317. Interests that take priority over or take free of security interest or agricultural lien
§ 4-9-319. Rights and title of consignee with respect to creditors and purchasers
§ 4-9-321. Licensee of general intangible and lessee of goods in ordinary course of business
§ 4-9-324. Priority of purchase-money security interests
§ 4-9-325. Priority of security interests in transferred collateral
§ 4-9-326. Priority of security interests created by new debtor
§ 4-9-327. Priority of security interests in deposit account
§ 4-9-328. Priority of security interests in investment property
§ 4-9-329. Priority of security interests in letter-of-credit right
§ 4-9-330. Priority of purchaser of chattel paper or instrument
§ 4-9-332. Transfer of money — Transfer of funds from deposit account
§ 4-9-333. Priority of certain liens arising by operation of law
§ 4-9-334. Priority of security interests in fixtures and crops
§ 4-9-337. Priority of security interests in goods covered by certificate of title