Indiana Code
Chapter 9.1. Secured Transactions
26-1-9.1-320. Buyer of Goods

Sec. 320. (a) Except as otherwise provided in this subsection and subsection (e), a buyer in ordinary course of business 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. The following apply whenever a person is buying farm products from a person engaged in farming operations who has created a security interest on the farm products:
(1) A person buying farm products from a person engaged in farming operations is not protected by this subsection if, within one (1) year before the sale of the farm products, the buyer has received prior written notice of the security interest. "Written notice" means any writing that contains the following:
(A) The full name and address of the debtor.
(B) The full name and address of the secured party.
(C) In the case of a debtor doing business other than as an individual, the United States Internal Revenue Service taxpayer identification number of the debtor.
(D) A description of the collateral, including the type and amount of farm products, the crop year, the county of location, and a description of the real property on which the farm products were grown or produced.
(E) Any payment obligations imposed on the buyer by the secured party as conditions for waiver or release of the security interest.
Notice must be received before a buyer of farm products has made full payment to the person engaged in farming operations for the farm products if the notice is to be considered "prior written notice". The written notice lapses on either the expiration period of the statement or the transmission of a notice signed by the secured party that the statement has lapsed, whichever occurs first.
(2) A secured party must, within fifteen (15) days of the satisfaction of the debt, inform in writing each potential buyer listed by the debtor whenever a debt has been satisfied and written notice, as required by subdivision (1), had been previously sent to that buyer.
(3) A debtor engaged in farming operations who has created a security interest in farm products must provide the secured party with a written list of potential buyers of the farm products at the time the debt is incurred if such a list is requested by the secured party. The debtor may not sell farm products to a buyer who does not appear on the list (if the list is requested by the secured party) unless the secured party has given prior written permission to the debtor to sell to someone who does not appear on the list, or the debtor satisfies the debt for that secured party on the farm products he sells within fifteen (15) days of the date of sale. A debtor who knowingly or intentionally sells to a buyer who does not appear on the list (if the list is requested by the secured party) and who does not meet one (1) of the above exceptions, commits a Class C misdemeanor. A secured party commits a Class C infraction if the secured party knowingly or intentionally gives false or misleading information on the notice required by subdivision (1) or the secured party fails within fifteen (15) days of satisfaction of the debt to notify purchasers to whom a written notice had been previously sent under subdivision (1) of the satisfaction of the debt.
(4) A purchaser of farm products buying from a person engaged in farming operations must issue a check for payment jointly to the debtor and those secured parties from whom he has received prior written notice of a security interest as provided for in subdivision (1). A purchaser who fails to issue a jointly payable check as required by this subsection is not protected by this subdivision. A purchaser of farm products (on which there is a perfected security interest) buying from a person engaged in farming operations who withholds all or part of the proceeds of the sale from the seller, in order to satisfy a prior debt ("prior debt" does not include the costs of marketing the farm product or the cost of transporting the farm product to the market) owed by the seller to the buyer, commits a Class C infraction.
(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 IC 26-1-9.1-316(a) and IC 26-1-9.1-316(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 IC 26-1-9.1-313.
As added by P.L.57-2000, SEC.45.

Structure Indiana Code

Indiana Code

Title 26. Commercial Law

Article 1. Uniform Commercial Code

Chapter 9.1. Secured Transactions

26-1-9.1-101. Short Title

26-1-9.1-102. Definitions and Index of Definitions

26-1-9.1-102.5. "Take Free"; "Takes Free"; "Takes the Money Free"; "Takes the Funds Free"

26-1-9.1-103. Purchase-Money Security Interest; Application of Payment; Burden of Establishing

26-1-9.1-104. Control of Deposit Account

26-1-9.1-105. Control of Electronic Chattel Paper

26-1-9.1-106. Control of Investment Property

26-1-9.1-107. Control of Letter-of-Credit Right

26-1-9.1-107.1. Control of Controllable Electronic Record, Controllable Account, or Controllable Payment Intangible

26-1-9.1-108. Sufficiency of Description

26-1-9.1-109. Scope

26-1-9.1-110. Security Interests Arising Under Ic 26-1-2 or Ic 26-1-2.1

26-1-9.1-201. General Effectiveness of Security Agreement

26-1-9.1-202. Title to Collateral Immaterial

26-1-9.1-203. Attachment and Enforceability of Security Interest; Proceeds; Supporting Obligations; Formal Requisites

26-1-9.1-204. After-Acquired Property; Future Advances

26-1-9.1-205. Use or Disposition of Collateral Permissible

26-1-9.1-206. Security Interest Arising in Purchase or Delivery of Financial Asset

26-1-9.1-207. Rights and Duties of Secured Party Having Possession or Control of Collateral

26-1-9.1-208. Additional Duties of Secured Party Having Control of Collateral

26-1-9.1-209. Duties of Secured Party if Account Debtor Has Been Notified of Assignment

26-1-9.1-210. Request for Accounting; Request Regarding List of Collateral or Statement of Account

26-1-9.1-301. Law Governing Perfection and Priority of Security Interests

26-1-9.1-302. Law Governing Perfection and Priority of Agricultural Liens

26-1-9.1-303. Law Governing Perfection and Priority of Security Interests in Goods Covered by a Certificate of Title

26-1-9.1-304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts

26-1-9.1-305. Law Governing Perfection and Priority of Security Interests in Investment Property

26-1-9.1-306. Law Governing Perfection and Priority of Security Interests in Letter-of-Credit Rights

26-1-9.1-307. Location of Debtor

26-1-9.1-308. When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection

26-1-9.1-309. Security Interest Perfected Upon Attachment

26-1-9.1-310. When Filing Required to Perfect Security Interest or Agricultural Lien; Security Interests and Agricultural Liens to Which Filing Provisions Do Not Apply

26-1-9.1-311. Perfection of Security Interests in Property Subject to Certain Statutes, Regulations, and Treaties

26-1-9.1-312. Perfection by Permissive Filing; Perfection Only by Control or Possession; Temporary Perfection Without Filing or Transfer of Possession

26-1-9.1-313. When Possession by or Delivery to Secured Party Perfects Security Interest Without Filing

26-1-9.1-314. Perfection by Control

26-1-9.1-315. Secured Party's Rights on Disposition of Collateral and in Proceeds

26-1-9.1-316. Continued Perfection of Security Interest Following Change in Governing Law

26-1-9.1-317. Interests That Take Priority Over or Take Free of Unperfected Security Interest or Agricultural Lien

26-1-9.1-318. 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

26-1-9.1-319. Rights and Title of Consignee With Respect to Creditors and Purchasers

26-1-9.1-320. Buyer of Goods

26-1-9.1-321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business

26-1-9.1-322. Priorities Among Conflicting Security Interests in and Agricultural Liens on Same Collateral

26-1-9.1-323. Future Advances

26-1-9.1-324. Priority of Purchase-Money Security Interests

26-1-9.1-325. Priority of Security Interests in Transferred Collateral

26-1-9.1-326. Priority of Security Interests Created by New Debtor

26-1-9.1-327. Priority of Security Interests in Deposit Account

26-1-9.1-328. Priority of Security Interests in Investment Property

26-1-9.1-329. Priority of Security Interests in Letter-of-Credit Rights

26-1-9.1-330. Priority of Purchases of Chattel Paper or Instrument

26-1-9.1-331. Priority of Rights of Holders or Purchasers; Persons Protected Against Adverse Claims; Filing Not Considered Notice of Claim or Defense

26-1-9.1-332. Transfer of Money; Transfer of Funds From Deposit Account

26-1-9.1-333. Priority of Certain Liens Arising by Operation of Law

26-1-9.1-334. Priority of Security Interests in Fixtures and Crops

26-1-9.1-335. Accessions

26-1-9.1-336. Commingled Goods

26-1-9.1-337. Priority of Security Interests in Goods Covered by Certificate of Title

26-1-9.1-338. Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

26-1-9.1-339. Priority Subject to Subordination

26-1-9.1-340. Effectiveness of Right of Recoupment or Setoff Against Deposit Account

26-1-9.1-341. Bank's Rights and Duties With Respect to Deposit Account

26-1-9.1-342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement

26-1-9.1-401. Alienability of Debtor's Rights

26-1-9.1-402. Secured Party Not Obligated on Contract of Debtor or in Tort

26-1-9.1-403. Agreement Not to Assert Defenses Against Assignee

26-1-9.1-404. Rights Acquired by Assignee; Claims and Defenses Against Assignee

26-1-9.1-405. Modification of Assigned Contract

26-1-9.1-406. Discharge of Account Debtor; Notification of Assignment; Identification and Proof of Assignment; Restrictions on Assignment of Accounts, Chattel Paper, Payment Intangibles, and Promissory Notes Ineffective

26-1-9.1-407. Restrictions on Creation or Enforcement of Security Interest in Leasehold Interest or in Lessor's Residual Interest

26-1-9.1-408. Restrictions on Assignment of Promissory Notes, Health Care Insurance Receivables, and Certain General Intangibles Ineffective

26-1-9.1-409. Restrictions on Assignment of Letter-of-Credit Rights Ineffective

26-1-9.1-501. Filing Office

26-1-9.1-502. Contents of Financing Statement; Record of Mortgage as Financing Statement; Time of Filing Financing Statement

26-1-9.1-503. Name of Debtor and Secured Party

26-1-9.1-504. Indication of Collateral

26-1-9.1-505. Filing and Compliance With Other Statutes and Treaties for Consignments, Leases, Other Bailments, and Other Transactions

26-1-9.1-506. Effect of Errors or Omissions

26-1-9.1-507. Effect of Certain Events on Effectiveness of Financing Statement

26-1-9.1-508. Effectiveness of Financing Statement if New Debtor Becomes Bound by Security Agreement

26-1-9.1-509. Persons Entitled to File a Record

26-1-9.1-510. Effectiveness of Filed Record

26-1-9.1-511. Secured Party of Record

26-1-9.1-512. Amendment of Financing Statement

26-1-9.1-513. Termination Statement

26-1-9.1-514. Assignment of Powers of Secured Party of Record

26-1-9.1-515. Duration and Effectiveness of Financing Statement; Effect of Lapsed Financing Statement

26-1-9.1-516. What Constitutes Filing; Effectiveness of Filing

26-1-9.1-517. Effect of Indexing Errors

26-1-9.1-518. Claim Concerning Inaccurate or Wrongfully Filed Record

26-1-9.1-519. Numbering, Maintaining, and Indexing Records; Communicating Information Provided in Records

26-1-9.1-520. Acceptance and Refusal to Accept Record

26-1-9.1-521. Written Record Filing; Format

26-1-9.1-522. Maintenance and Destruction of Records

26-1-9.1-523. Information From Filing Office; Sale or License of Records

26-1-9.1-524. Delay by Filing Office

26-1-9.1-525. Fees

26-1-9.1-526. Filing—office Rules

26-1-9.1-527. Duty to Report

26-1-9.1-601. Rights After Default; Judicial Enforcement; Consignor or Buyer of Accounts, Chattel Paper, Payment Intangibles, or Promissory Notes

26-1-9.1-602. Waiver and Variance of Rights and Duties

26-1-9.1-603. Agreement on Standards Concerning Rights and Duties

26-1-9.1-604. Procedure if Security Agreement Covers Real Property or Fixtures

26-1-9.1-605. Unknown Debtor or Secondary Obligor

26-1-9.1-606. Time of Default for Agricultural Lien

26-1-9.1-607. Collection and Enforcement by Secured Party

26-1-9.1-608. Application of Proceeds of Collection or Enforcement; Liability for Deficiency and Right to Surplus

26-1-9.1-609. Secured Party's Right to Take Possession After Default

26-1-9.1-610. Disposition of Collateral After Default

26-1-9.1-611. Notification Before Disposition of Collateral

26-1-9.1-612. Timeliness of Notification Before Disposition of Collateral

26-1-9.1-613. Contents and Form of Notification Before Disposition of Collateral; General

26-1-9.1-614. Contents and Form of Notification Before Disposition of Collateral; Consumer Goods Transaction

26-1-9.1-615. Application of Proceeds of Disposition; Liability for Deficiency and Right to Surplus

26-1-9.1-616. Explanation of Calculation of Surplus or Deficiency

26-1-9.1-617. Rights of Transferee of Collateral

26-1-9.1-618. Rights and Duties of Certain Secondary Obligors

26-1-9.1-619. Transfer of Record or Legal Title

26-1-9.1-620. Acceptance of Collateral in Full or Partial Satisfaction of Obligation; Compulsory Disposition of Collateral

26-1-9.1-621. Notification of Proposal to Accept Collateral

26-1-9.1-622. Effect of Acceptance of Collateral

26-1-9.1-623. Right to Redeem Collateral

26-1-9.1-624. Waiver

26-1-9.1-625. Remedies for Secured Party's Failure to Comply With Chapter

26-1-9.1-626. Action in Which Deficiency or Surplus Is in Issue

26-1-9.1-627. Determination of Whether Conduct Was Commercially Reasonable

26-1-9.1-628. Nonliability and Limitation on Liability of Secured Party; Liability of Secondary Obligor

26-1-9.1-701. Effective Date

26-1-9.1-702. Savings Clause

26-1-9.1-703. Security Interest Perfected Before Effective Date

26-1-9.1-704. Security Interest Unperfected Before Effective Date

26-1-9.1-705. Effectiveness of Action Taken Before Effective Date

26-1-9.1-706. Filing of Initial Financing Statement; Effectiveness of Financing Statement

26-1-9.1-707. Pre-Effective-Date Financing Statement

26-1-9.1-708. Persons Entitled to File Initial Financing Statement or Continuation Statement

26-1-9.1-709. Priority

26-1-9.1-801. Transactions or Liens Entered Into or Created Before July 1, 2013

26-1-9.1-802. Security Interest Perfected Before July 1, 2013

26-1-9.1-803. Security Interest Unperfected Before July 1, 2013

26-1-9.1-804. Effectiveness of Action Taken Before July 1, 2013

26-1-9.1-805. When Initial Financing Statement Suffices to Continue Effectiveness of Financing Statement

26-1-9.1-806. Amendment of Financing Statement Filed Before July 1, 2013

26-1-9.1-807. Person Entitled to File Initial Financing Statement or Continuation Statement

26-1-9.1-808. Priority

26-1-9.1-901. Refusal to Accept Financing Statements; Fraudulent Financing Statements; No Duty to Inspect Financing Statements

26-1-9.1-902. Judicial Reviews of Financing Statements; Pro Se Motions