N.Y. Uniform Commercial Code Law § 9-338: Priority of Security Interest or Agricultural Lien Perfected by Filed Financing Statement Providing Certain Incorrect Information

Section 9--338. Priority of Security Interest or Agricultural Lien

Perfected by Filed Financing Statement Providing

Certain Incorrect Information.

If a security interest or agricultural lien is perfected by a filed

financing statement providing information described in Section

9--516(b)(5) which is incorrect at the time the financing statement is

filed:

(1) the security interest or agricultural lien is subordinate to a

conflicting perfected security interest in the collateral to the extent

that the holder of the conflicting security interest gives value in

reasonable reliance upon the incorrect information; and

(2) a purchaser, other than a secured party, of the collateral takes

free of the security interest or agricultural lien to the extent that,

in reasonable reliance upon the incorrect information, the purchaser

gives value and, in the case of tangible chattel paper, tangible

documents, goods, instruments, or a security certificate, receives

delivery of the collateral.