If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this State issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:

1. (1) a buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and
2. (2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under Section 36-9-311(b), after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.

HISTORY: 2001 Act No. 67, Section 12. "Buyer" Section 36-2-103(1)(a) "Certificate-of-title" Section 36-9-102(a)(10) "Goods" Section 36-9-102(a)(44) "Knowledge" Section 36-1-201(25) [see now Section 36-1-202] "Receives delivery of goods" See Section 36-2-103(1)(c) "Secured party" Section 36-9-102(a)(72) "Security interest" Section 36-1-201(37) [see now Section 36-1-203]