New York Laws
Sub Part 3 - Priority
9-338 - Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

(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.

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