Sec. 9317.
(1) A security interest or agricultural lien is subordinate to the rights of 1 or more of the following:
(a) A person entitled to priority under section 9322.
(b) Except as otherwise provided in subsection (5), a person that becomes a lien creditor before the earlier of the following:
(i) The time the security interest or agricultural lien is perfected.
(ii) The time 1 of the conditions specified in section 9203(2)(c) is met and a financing statement covering the collateral is filed.
(2) Except as otherwise provided in subsection (5), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(3) Except as otherwise provided in subsection (5), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.
(4) A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.
(5) Except as otherwise provided in sections 9320 and 9321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor that arise between the time the security interest attaches and the time of filing.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 2000, Act 348, Eff. July 1, 2001 ;-- Am. 2012, Act 87, Eff. July 1, 2013
Structure Michigan Compiled Laws
Chapter 440 - Uniform Commercial Code
Act 174 of 1962 - Uniform Commercial Code (440.1101 - 440.11102)
Article 9 - Secured Transactions (440.9101...440.9994)
174-1962-9-3 - Part 3 Perfection and Priority (440.9301...440.9342)
174-1962-9-3-3. - Subpart 3. Priority (440.9317...440.9339)
Section 440.9319 - Rights and Title of Consignee With Respect to Creditors and Purchasers.
Section 440.9320 - Buyer of Goods.
Section 440.9323 - Future Advances.
Section 440.9324 - Priority of Purchase-Money Security Interests.
Section 440.9325 - Priority of Security Interests in Transferred Collateral.
Section 440.9326 - Priority of Security Interests Created by New Debtor.
Section 440.9327 - Priority of Security Interests in Deposit Account.
Section 440.9328 - Priority of Security Interests in Investment Property.
Section 440.9329 - Priority of Security Interests in Letter-of-Credit Right.
Section 440.9330 - Priority of Purchaser of Chattel Paper or Instrument.
Section 440.9332 - Transfer of Money; Transfer of Funds From Deposit Account.
Section 440.9333 - Priority of Certain Liens Arising by Operation of Law.
Section 440.9334 - Priority of Security Interests in Fixtures and Crops.
Section 440.9335 - Accessions.
Section 440.9336 - Commingled Goods.
Section 440.9337 - Priority of Security Interests in Goods Covered by Certificate of Title.