N.Y. Uniform Commercial Code Law Section 9-331
Priority of Rights of Purchasers of Instruments, Documents, and Securities under Other Articles

  • Priority of Interests in Financial Asset...
* Section 9--331. Priority of Rights of Purchasers of Instruments, Documents, and Securities under Other Articles; Priority of Interests in Financial Assets and Security Entitlements under Article 8.

(a)

Rights under Articles 3, 7, and 8 not limited. This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in Articles 3, 7, and

8.

(b)

Protection under Article 8. This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Article 8.

(c)

Filing not notice. Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b).

(d)

Section not applicable to cooperative interests. Subsections (a), (b), and

(c)

do not apply to cooperative interests. * NB Effective until June 3, 2026 * Section 9--331. Priority of Rights of Purchasers of Controllable Accounts, Controllable Electronic Records, Controllable Payment Intangibles, Documents, Instruments, and Securities under Other Articles; Priority of Interests in Financial Assets and Security Entitlements and Protection Against Assertion of Claim under Articles 8 and 12.

(a)

Rights under Articles 3, 7, 8, and 12 not limited. This article does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, protected purchaser of a security, or a qualifying purchaser of a controllable account, controllable electronic record, or controllable payment intangible. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in Articles 3, 7, 8, and

12.

(b)

Protection under Articles 8 and 12. This article does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under Article 8 or 12.

(c)

Filing not notice. Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b).

(d)

Section not applicable to cooperative interests. Subsections (a), (b), and

(c)

do not apply to cooperative interests. * NB Effective June 3, 2026

Source: Section 9-331 — Priority of Rights of Purchasers of Instruments, Documents, and Securities under Other Articles; Priority of Interests in Financial Asset..., https://www.­nysenate.­gov/legislation/laws/UCC/9-331 (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

§ 9-331. Priority of Rights of Purchasers of Instruments, Documents, & Securities under Other Articles's source at nysenate​.gov

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