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Secured Transactions Act · s 40

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s 40Priority of purchaser of negotiable instrument, document of title, chattel paper and security certificate

A purchaser of a negotiable instrument, document of title, chattel paper or security certificate shall have priority over a perfected security interest in the negotiable instrument, document of title, chattel paper or security certificate if the purchaser —

Secured Transactions

(a)

gave value;

(b)

acquired the negotiable instrument, document of title, chattel paper or security certificate without knowledge that the transaction is a breach of the security agreement to which the security interest relates; and

(c)

took possession of the negotiable instrument, document of title, chattel paper or security certificate.