Sec. 9.338. 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 9.516(b)(5) that 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.
Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 29, eff. September 1, 2005.
Structure Texas Statutes
Title 1 - Uniform Commercial Code
Chapter 9 - Secured Transactions
Subchapter C. Perfection and Priority
Section 9.301. Law Governing Perfection and Priority of Security Interests
Section 9.302. Law Governing Perfection and Priority of Agricultural Liens
Section 9.304. Law Governing Perfection and Priority of Security Interests in Deposit Accounts
Section 9.305. Law Governing Perfection and Priority of Security Interests in Investment Property
Section 9.307. Location of Debtor
Section 9.308. When Security Interest or Agricultural Lien Is Perfected; Continuity of Perfection
Section 9.309. Security Interest Perfected Upon Attachment
Section 9.314. Perfection by Control
Section 9.315. Secured Party's Rights on Disposition of Collateral and in Proceeds
Section 9.316. Effect of Change in Governing Law
Section 9.319. Rights and Title of Consignee With Respect to Creditors and Purchasers
Section 9.320. Buyers of Goods
Section 9.321. Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business
Section 9.323. Future Advances
Section 9.324. Priority of Purchase-Money Security Interests
Section 9.325. Priority of Security Interests in Transferred Collateral
Section 9.326. Priority of Security Interests Created by New Debtor
Section 9.327. Priority of Security Interests in Deposit Account
Section 9.328. Priority of Security Interests in Investment Property
Section 9.329. Priority of Security Interests in Letter-of-Credit Right
Section 9.330. Priority of Purchaser of Chattel Paper or Instrument
Section 9.332. Transfer of Money; Transfer of Funds From Deposit Account
Section 9.333. Priority of Certain Liens Arising by Operation of Law
Section 9.334. Priority of Security Interests in Fixtures and Crops
Section 9.336. Commingled Goods
Section 9.337. Priority of Security Interests in Goods Covered by Certificate of Title
Section 9.339. Priority Subject to Subordination
Section 9.340. Effectiveness of Right of Recoupment or Set-Off Against Deposit Account
Section 9.341. Bank's Rights and Duties With Respect to Deposit Account
Section 9.342. Bank's Right to Refuse to Enter Into or Disclose Existence of Control Agreement