Tennessee § 47-9-317 - Interests that take priority over or take free of security interest or agricultural lien.

§ 47-9-317. Interests that take priority over or take free of security interest or agricultural lien.

Conflicting security interests and rights of lien creditors. A security interest or agricultural lien is subordinate to the rights of: A person entitled to priority under § 47-9-322; and Except as otherwise provided in subsection (e), a person that becomes a lien creditor before the earlier of the time: The security interest or agricultural lien is perfected; or One (1) of the conditions specified in § 47-9-203(b)(3) is met and a financing statement covering the collateral is filed. Buyers that receive delivery. Except as otherwise provided in subsection (e), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected. Lessees that receive delivery. Except as otherwise provided in subsection (e), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected. Licensees and buyer of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of collateral other than tangible chattel paper, tangible documents, goods, instruments, or a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected. Purchase-money security interest. Except as otherwise provided in §§ 47-9-320 and 47-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within thirty (30) days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing. Acts 2000, ch. 846, § 1; 2008, ch. 686, § 1; 2008, ch. 814, §§ 35, 36; 2012, ch. 708, § 8. Compiler's Notes. Former part 3, §§ 47-9-301 — 47-9-318 (Acts 1963, ch. 81, § 1 (9-301 — 9-318); 1965, ch. 86, § 1; 1967, ch. 318, § 1; 1978, ch. 773, §§ 1, 2; 1979, ch. 283, §§ 1, 2; 1983, ch. 114, §§ 1, 3[2]; 1985, ch. 404, §§ 13-22; 1986, ch. 737, §§ 48-52; 1987, ch. 102, § 1; 1997, ch. 79, §§ 7-14; 1998, ch. 675, §§ 10-12) was repealed and replaced in the revision of chapter 9 of the Uniform Commercial Code by Acts 2000, ch. 846, § 1, effective July 1, 2001. Amendments. The 2012 amendment, effective July 1, 2013, substituted “certificated security” for “security certificate” in (b); and, in (d), substituted “buyer” for “buyers” in the subsection heading, and substituted “collateral other than tangible chattel paper, tangible documents, goods, instruments, or” for “accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than”. Effective Dates. Acts 2012, ch. 708, § 22. July 1, 2013; provided, that, for the purpose of the secretary of state taking necessary actions for the implementation of the act, the act shall take effect April 11, 2012. Cross-References. Transition provisions, title 47, ch. 9, part 7. Textbooks. Tennessee Jurisprudence, 3 Tenn. Juris., Assignments for the Benefit of Creditors, § 22; 4 Tenn. Juris., Automobiles, § 29; 4 Tenn. Juris., Bankruptcy, §§ 7, 26; 6 Tenn. Juris., Commercial Law, §§ 98, 102, 103; 12 Tenn. Juris., Executions, § 17; 18 Tenn. Juris., Liens, § 9. Law Reviews. The New Article 9: Its Impact on Tennessee Law (Part II), 67 Tenn. L. Rev. 329 (2000). Priorities in Accounts: The Crazy Quilt of Current Law and a Proposal for Reform (Dan T. Coenen), 45 Vand. L. Rev. 1061 (1992). The Priority Battle Over Returned and Repossessed Goods: Inventory Financers Versus Chattel Paper Financers, 44 Vand. L. Rev. 1101 (1991).