§ 554.9330

554.9330 Priority of purchaser of chattel paper or instrument. 1. Purchaser’s priority — security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merelyas 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 and takes possession of the chattel paper or obtains control of the chattelpaper under section 554.9105; and b. the chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser. 2. Purchaser’s priority — other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely asproceeds of inventory subject to a security interest if the purchaser gives new value andtakes possession of the chattel paper or obtains control of the chattel paper under section554.9105 in good faith, in the ordinary course of the purchaser’s business, and withoutknowledge that the purchase violates the rights of the secured party. 3. Chattel paper purchaser’s priority in proceeds.

in good faith, in the ordinary course of the purchaser’s business, and withoutknowledge that the purchase violates the rights of the secured party. 3. Chattel paper purchaser’s priority in proceeds. Except as otherwise provided in section 554.9327, a purchaser having priority in chattel paper under subsection 1 or 2 alsohas priority in proceeds of the chattel paper to the extent that: a. section 554.9322 provides for priority in the proceeds; orb. 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. Instrument purchaser’s priority. Except as otherwise provided in section 554.9331, subsection 1, a purchaser of an instrument has priority over a security interest in theinstrument perfected by a method other than possession if the purchaser gives value andtakes possession of the instrument in good faith and without knowledge that the purchaseviolates the rights of the secured party. 5. Holder of purchase-money security interest gives new value. For purposes of subsections 1 and 2, the holder of a purchase-money security interest in inventory gives

he rights of the secured party. 5. Holder of purchase-money security interest gives new value. For purposes of subsections 1 and 2, the holder of a purchase-money security interest in inventory gives newvalue for chattel paper constituting proceeds of the inventory. 6. Indication of assignment gives knowledge. For purposes of subsections 2 and 4, if chattel paper or an instrument indicates that it has been assigned to an identified securedparty other than the purchaser, a purchaser of the chattel paper or instrument has knowledgethat the purchase violates the rights of the secured party. 2000 Acts, ch 1149, §50, 187Referred to in §554.9322, 554.9324, 554D.118 Sat Dec 23 11:01:58 2023 Iowa Code 2024, Section 554.9330 (25, 0)