N.Y. Uniform Commercial Code Law § 9-331: Priority of Rights of Purchasers of Controllable Accounts, Controllable Electronic Records, Controllable Payment Intangibles, Documents, ...

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.