Code of Alabama
Division 3 - Priority.
Section 7-9A-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information.

If a security interest or agricultural lien is perfected by a filed financing statement providing information described in Section 7-9A-516(b)(5) which is incorrect at the time the financing statement is filed:
(1) the security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance upon the incorrect information; and
(2) a purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance upon the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments, or a security certificate, receives delivery of the collateral.

Structure Code of Alabama

Code of Alabama

Title 7 - Commercial Code.

Article 9A - Secured Transactions.

Part 3 - Perfection and Priority.

Division 3 - Priority.

Section 7-9A-317 - Interests That Take Priority Over or Take Free of Security Interest or Agricultural Lien.

Section 7-9A-318 - No Interest Retained in Right to Payment That Is Sold; Rights and Title of Seller of Account or Chattel Paper With Respect to Creditors and Purchasers.

Section 7-9A-319 - Rights and Title of Consignee With Respect to Creditors and Purchasers.

Section 7-9A-320 - Buyer of Goods; Alabama Farmers Credit Protection Fund.

Section 7-9A-321 - Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business.

Section 7-9A-322 - Priorities Among Conflicting Security Interests in and Agricultural Liens on Same Collateral.

Section 7-9A-323 - Future Advances.

Section 7-9A-324 - Priority of Purchase-Money Security Interests.

Section 7-9A-325 - Priority of Security Interests in Transferred Collateral.

Section 7-9A-326 - Priority of Security Interests Created by New Debtor.

Section 7-9A-327 - Priority of Security Interests in Deposit Account.

Section 7-9A-328 - Priority of Security Interests in Investment Property.

Section 7-9A-329 - Priority of Security Interests in Letter-of-Credit Right.

Section 7-9A-330 - Priority of Purchaser of Chattel Paper or Instrument.

Section 7-9A-331 - Priority of Rights of Purchasers of Instruments, Documents, and Securities Under Other Articles; Priority of Interests in Financial Assets and Security Entitlements Under Article 8.

Section 7-9A-332 - Transfer of Money; Transfer of Funds From Deposit Account.

Section 7-9A-333 - Priority of Certain Liens Arising by Operation of Law.

Section 7-9A-334 - Priority of Security Interests in Fixtures and Crops.

Section 7-9A-335 - Accessions.

Section 7-9A-336 - Commingled Goods.

Section 7-9A-337 - Priority of Security Interests in Goods Covered by Certificate of Title.

Section 7-9A-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information.

Section 7-9A-339 - Priority Subject to Subordination.