N.Y. Uniform Commercial Code Law Section 9-330
Priority of Purchaser of Chattel Paper or Instrument

Section 9--330. Priority of Purchaser of Chattel Paper or Instrument. * (a) Purchaser’s priority: security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:

(1)

in good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under Section 9--105; and

(2)

the chattel paper does not indicate that it has been assigned to an identified assignee other than the purchaser. * NB Effective until June 3, 2026 * (a) Purchaser’s priority: security interest claimed merely as proceeds. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed merely as proceeds of inventory subject to a security interest if:

(1)

in good faith and in the ordinary course of the purchaser’s business, the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under Section 9--105 of each authoritative electronic copy of the record evidencing the chattel paper; and

(2)

the authoritative copies of the record evidencing the chattel paper do not indicate that the chattel paper has been assigned to an identified assignee other than the purchaser. * NB Effective June 3, 2026 * (b) Purchaser’s priority: other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value and takes possession of the chattel paper or obtains control of the chattel paper under Section 9--105 in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party. * NB Effective until June 3, 2026 * (b) Purchaser’s priority: other security interests. A purchaser of chattel paper has priority over a security interest in the chattel paper which is claimed other than merely as proceeds of inventory subject to a security interest if the purchaser gives new value, takes possession of each authoritative tangible copy of the record evidencing the chattel paper, and obtains control under Section 9--105 of each authoritative electronic copy of the record evidencing the chattel paper in good faith, in the ordinary course of the purchaser’s business, and without knowledge that the purchase violates the rights of the secured party. * NB Effective June 3, 2026 (c) Chattel paper purchaser’s priority in proceeds. Except as otherwise provided in Section 9--327, a purchaser having priority in chattel paper under subsection (a) or (b) also has priority in proceeds of the chattel paper to the extent that:

(1)

Section 9--322 provides for priority in the proceeds; or

(2)

the proceeds consist of the specific goods covered by the chattel paper or cash proceeds of the specific goods, even if the purchaser’s security interest in the proceeds is unperfected.

(d)

Instrument purchaser’s priority. Except as otherwise provided in Section 9--331(a), a purchaser of an instrument has priority over a security interest in the instrument perfected by a method other than possession if the purchaser gives value and takes possession of the instrument in good faith and without knowledge that the purchase violates the rights of the secured party.

(e)

Holder of purchase-money security interest gives new value. For purposes of subsections (a) and (b), the holder of a purchase-money security interest in inventory gives new value for chattel paper constituting proceeds of the inventory. * (f) Indication of assignment gives knowledge. For purposes of subsections (b) and (d), if chattel paper or an instrument indicates that it has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party. * NB Effective until June 3, 2026 * (f) Indication of assignment gives knowledge. For purposes of subsections (b) and (d), if the authoritative copies of the record evidencing chattel paper or an instrument indicate that the chattel paper or instrument has been assigned to an identified secured party other than the purchaser, a purchaser of the chattel paper or instrument has knowledge that the purchase violates the rights of the secured party. * NB Effective June 3, 2026

Source: Section 9-330 — Priority of Purchaser of Chattel Paper or Instrument, https://www.­nysenate.­gov/legislation/laws/UCC/9-330 (updated Dec. 12, 2025; accessed Dec. 13, 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. 13, 2025

Last modified:
Dec. 12, 2025

§ 9-330. Priority of Purchaser of Chattel Paper or Instrument's source at nysenate​.gov

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