1. (a) A security interest or agricultural lien is subordinate to the rights of:

   1. (1) a person entitled to priority under Section 36-9-322; and

   2. (2) except as otherwise provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:

      1. (A) the security interest or agricultural lien is perfected; or
      2. (B) one of the conditions specified in Section 36-9-203(b)(3) is met and a financing statement covering the collateral is filed.
2. (b) 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.
3. (c) 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.
4. (d) A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than 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.
5. (e) Except as otherwise provided in Sections 36-9-320 and 36-9-321, if a person files a financing statement with respect to a purchase-money security interest before or within twenty 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.

HISTORY: 1962 Code Section 10.9-317; 1966 (54) 2716; 1988 Act No. 494, Section 5; 2001 Act No; 67, Section 12; 2013 Act No. 96, Section 7, eff July 1, 2013; 2014 Act No. 213 (S.343), Section 43, eff October 1, 2014. Definitional Cross: "Account" Section 36-9-102(a)(2) "Agricultural lien" Section 36-9-102(a)(5) "Certificated security" Section 36-9-102(a)(4) "Collateral" Section 36-9-102(a)(12) "Delivery" Section 36-1-201(14) "Document" Sections 36-9-102(a)(30) 36-7-102(1)(e), 36-1-201(15) "Electronic chattel paper" Section 36-9-102(a)(31) "Financing statement" Section 36-9-102(a)(39) "General intangible" Section 36-9-102(a)(42) "Goods" Section 36-9-102(a)(44) "Instrument" Section 36-9-102(a)(47) "Investment property" Section 36-9-102(a)(49) "Knowledge" Section 36-1-201(25) [see now Section 36-1-202] "Lessee" Section 36-2A-103(1)(n) "Licensee" See Section 36-9-321(a) "Lien creditor" Section 36-9-102(a)(52) "Purchase-money security interest" Section 36-9-103 "Security interest" Section 36-1-201(37) [see now Section 36-1-203] "Tangible chattel paper" Section 36-9-102(a)(79) Cross -