N.Y. Uniform Commercial Code Law Section 9-320
Buyer of Goods

Section 9--320. Buyer of Goods.

(a)

Buyer in ordinary course of business. Except as otherwise provided in 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)

Buyer of consumer goods. Except 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)

without knowledge of the security interest;

(2)

for value;

(3)

primarily for the buyer’s personal, family, or household purposes; and

(4)

before the filing of a financing statement covering the goods.

(c)

Effectiveness of filing for subsection (b). To 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 Section 9--316(a) and (b).

(d)

Buyer in ordinary course of business at wellhead or minehead. A 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)

Possessory security interest not affected. Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under Section 9--313.

Source: Section 9-320 — Buyer of Goods, https://www.­nysenate.­gov/legislation/laws/UCC/9-320 (updated Sep. 22, 2014; accessed Dec. 20, 2025).

9–317
Interests That Take Priority over or Take Free of Security Interest or Agricultural Lien 9–318
No Interest Retained in Right to Payment That Is Sold 9–319
Rights and Title of Consignee with Respect to Creditors and Purchasers 9–320
Buyer of Goods 9–321
Licensee of General Intangible and Lessee of Goods in Ordinary Course of Business 9–322
Priorities among Conflicting Security Interests in and Agricultural Liens on Same Collateral 9–323
Future Advances 9–324
Priority of Purchase-money Security Interests 9–325
Priority of Security Interests in Transferred Collateral 9–326
Priority of Security Interests Created by New Debtor 9–326A
Priority of Security Interest in Controllable Account, Controllable Electronic Record, and Controllable Payment Intangible 9–327
Priority of Security Interests in Deposit Account 9–328
Priority of Security Interests in Investment Property 9–329
Priority of Security Interests in Letter-of-credit Right 9–330
Priority of Purchaser of Chattel Paper or Instrument 9–331
Priority of Rights of Purchasers of Instruments, Documents, and Securities under Other Articles 9–332
Transfer of Money 9–333
Priority of Certain Liens Arising by Operation of Law 9–334
Priority of Security Interests in Fixtures and Crops 9–335
Accessions 9–336
Commingled Goods 9–337
Priority of Security Interests in Goods Covered by Certificate of Title 9–338
Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information 9–339
Priority Subject to Subordination
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Verified:
Dec. 20, 2025

Last modified:
Sep. 22, 2014

§ 9-320. Buyer of Goods's source at nysenate​.gov

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