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District of Columbia · Through 2026-08-20 (D.C. Law 26-175)

D.C. Code § 28:9-320: Buyer of goods.

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Where this section sits in the code
  1. Title 28. Commercial Instruments and Transactions. [Enacted title]
  2. Subtitle I. Uniform Commercial Code.
  3. Article 9. Secured Transactions.
  4. Part III. Perfection and Priority.
  5. Subpart 3. Priority.

(a)

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)

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)

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 § 28:9-316(a) and (b).

(d)

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)

Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under § 28:9-313.

Collected 2026-08-29T05:44:07Z. Source file · JSON

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