New Jersey § 12a:9-338

§ 12a:9-338.

If a security interest or agricultural lien is perfected by a filed financing statement

providing information described in 12A:9-516(b)(5) which 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.