Nevada § 104.9330 - Priority of purchaser of chattel paper or instrument

§ 104.9330. Priority of purchaser of chattel paper or instrument

1. A purchaser of chattel paper has priority over a security interest in the chattel

paper which is claimed merely as proceeds of inventory subject to a security interest

if: (a) In good faith and in the ordinary course of the purchaser's business, the purchaser

gives new value, takes possession of each authoritative tangible copy of the record

evidencing the chattel paper and obtains control under NRS 104.9105 of each authoritative electronic copy of the record evidencing the chattel paper;

and (b) The authoritative copies of the record evidencing the chattel paper do not indicate

that the chattel paper has been assigned to an identified assignee other than the

purchaser. 2. A purchaser of chattel paper has priority over a security interest in the chattel

paper which is claimed other than merely as proceeds of inventory subject to a security

interest if the purchaser gives new value, takes possession of each authoritative

tangible copy of the record evidencing the chattel paper and obtains control under NRS 104.9105 of each authoritative electronic copy of the record evidencing the chattel paper

in good faith, in the ordinary course of the purchaser's business, and without knowledge

that the purchase violates the rights of the secured party. 3. Except as otherwise provided in NRS 104.9327 , a purchaser having priority in chattel paper under subsection 1 or 2 also has priority

in proceeds of the chattel paper to the extent that: (a) NRS 104.9322 provides for priority in the proceeds; or (b) The proceeds consist of the specific goods covered by the chattel paper or cash

proceeds of the specific goods, even if the purchaser's security interest in the proceeds

is unperfected. 4. Except as otherwise provided in subsection 1 of NRS 104.9331 , a purchaser of an instrument has priority over a security interest in the instrument

perfected by a method other than possession if the purchaser gives value and takes

possession of the instrument in good faith and without knowledge that the purchase

violates the rights of the secured party. 5. For purposes of subsections 1 and 2, the holder of a purchase-money security interest

in inventory gives new value for chattel paper constituting proceeds of the inventory. 6. For purposes of subsections 2 and 4, if the authoritative copies of the record

evidencing chattel paper or an instrument indicate that the chattel paper or instrument

has been assigned to an identified secured party other than the purchaser, a purchaser

of the chattel paper or instrument has knowledge that the purchase violates the rights

of the secured party.