Delaware Code Title 6. Commerce and Trade § 9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information
Current as of January 01, 2022 | Updated by FindLaw Staff
Welcome to FindLaw's Cases & Codes, a free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.
If a security interest or agricultural lien is perfected by a filed financing statement providing information described in Section 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.
Cite this article: FindLaw.com - Delaware Code Title 6. Commerce and Trade § 9-338. Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information - last updated January 01, 2022 | https://codes.findlaw.com/de/title-6-commerce-and-trade/de-code-sect-6-338/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?