(a) Buyer in ordinary course of business.--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) Buyer of consumer goods.--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) Effectiveness of filing for subsection (b).--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 section 9316(a) and (b) (relating to effect of change in governing law).
(d) Buyer in ordinary course of business at wellhead or minehead.--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) Possessory security interest not affected.--Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under section 9313 (relating to when possession by or delivery to secured party perfects security interest without filing).
(June 27, 2013, P.L.154, No.30, eff. July 1, 2013)
2013 Amendment. Act 30 amended subsec. (c).
Cross References. Section 9320 is referred to in sections 7209, 7503, 9317 of this title.
Structure Pennsylvania Consolidated & Unconsolidated Statutes
Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 93 - Perfection and Priority
Section 9301 - Law governing perfection and priority of security interests
Section 9302 - Law governing perfection and priority of agricultural liens
Section 9304 - Law governing perfection and priority of security interests in deposit accounts
Section 9305 - Law governing perfection and priority of security interests in investment property
Section 9307 - Location of debtor
Section 9308 - When security interest or agricultural lien is perfected; continuity of perfection
Section 9309 - Security interest perfected upon attachment
Section 9314 - Perfection by control
Section 9315 - Secured party's rights on disposition of collateral and in proceeds
Section 9316 - Effect of change in governing law
Section 9319 - Rights and title of consignee with respect to creditors and purchasers
Section 9321 - Licensee of general intangible and lessee of goods in ordinary course of business
Section 9323 - Future advances
Section 9324 - Priority of purchase-money security interests
Section 9325 - Priority of security interests in transferred collateral
Section 9326 - Priority of security interests created by new debtor
Section 9327 - Priority of security interests in deposit account
Section 9328 - Priority of security interests in investment property
Section 9329 - Priority of security interests in letter-of-credit right
Section 9330 - Priority of purchaser of chattel paper or instrument
Section 9332 - Transfer of money; transfer of funds from deposit account
Section 9333 - Priority of certain liens arising by operation of law
Section 9334 - Priority of security interests in fixtures and crops
Section 9336 - Commingled goods
Section 9337 - Priority of security interests in goods covered by certificate of title
Section 9339 - Priority subject to subordination
Section 9340 - Effectiveness of right of recoupment or set-off against deposit account
Section 9341 - Bank's rights and duties with respect to deposit account
Section 9342 - Bank's right to refuse to enter into or disclose existence of control agreement