(1) A buyer in ordinary course of business (subsection (9) of Section 36-1-201) other than a person buying farm products from a person engaged in farming operations takes free of a security interest created by his seller even though the security interest is perfected and even though the buyer knows of its existence.
(2) In the case of consumer goods, a buyer takes free of a security interest even though perfected if he buys without knowledge of the security interest, for value and for his own personal, family, or household purposes unless prior to the purchase the secured party has filed a financing statement covering the goods.
(3) A buyer other than a buyer in ordinary course of business (subsection (1) of this section) takes subject to a security interest with respect to both prior and future advances if the security interest is perfected or if the buyer has knowledge of the security interest. Knowledge by the secured party of the interest of the buyer does not impair the priority of the security interest with respect to advances thereafter made.
(4) In the case of a purchase of a motor vehicle made pursuant to the provisions of Section 29-15-10, the buyer takes free of a security interest even though perfected, and the Department of Public Safety shall upon request issue a new title free and clear of prior liens and encumbrances.