\t\r\n\t\t\t\t\t","hadText":true}Sec.\u00A09.320.\u00A0\u00A0BUYERS OF GOODS. (a) Except as otherwise provided by Subsection (e), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence.
(b)\u00A0\u00A0Except as otherwise provided in Subsection (e), a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys:
(1)\u00A0\u00A0without knowledge of the security interest;
(2)\u00A0\u00A0for value;
(3)\u00A0\u00A0primarily for the buyer's personal, family, or household purposes; and
(4)\u00A0\u00A0before the filing of a financing statement covering the goods.
(c)\u00A0\u00A0To the extent that it affects the priority of a security interest over a buyer of goods under Subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by Sections 9.316(a) and (b).
(d)\u00A0\u00A0A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance.
(e)\u00A0\u00A0Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under Section 9.313.
\r\nAdded by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.
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