{"data":{"id":"us-nj/n.j.-stat.-12a-9-317","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-317","heading":"Interests that take priority over or take free of security interest or agricultural lien.","body":"Interests That Take Priority Over or Take Free of Security Interest or Agricultural Lien.\n(a)\tConflicting security interests and rights of lien creditors.  A security interest or agricultural lien is subordinate to the rights of:\n(1)\ta person entitled to priority under 12A:9-322; and\n(2)\texcept as otherwise provided in subsection (e), a person that becomes a lien creditor before the earlier of the time:\n(A)\tthe security interest or agricultural lien is perfected; or\n(B)\tone of the conditions specified in 12A:9-203(b)(3) is met and a financing statement covering the collateral is filed.\n(b)\tBuyers that receive delivery.  Except as otherwise provided in subsection (e), a buyer, other than a secured party, of tangible chattel paper, tangible documents, goods, instruments, or a certificated security  takes free of a security interest or agricultural lien if the buyer gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.\n(c)\tLessees that receive delivery.  Except as otherwise provided in subsection (e), a lessee of goods takes free of a security interest or agricultural lien if the lessee gives value and receives delivery of the collateral without knowledge of the security interest or agricultural lien and before it is perfected.\n(d)\tLicensees and buyers of certain collateral. A licensee of a general intangible or a buyer, other than a secured party, of accounts, electronic chattel paper, electronic documents, general intangibles, or investment property other than a certificated security takes free of a security interest if the licensee or buyer gives value without knowledge of the security interest and before it is perfected.\n(e)\tPurchase-money security interest. Except as otherwise provided in 12A:9-320 and 12A:9-321, if a person files a financing statement with respect to a purchase-money security interest before or within 20 days after the debtor receives delivery of the collateral, the security interest takes priority over the rights of a buyer, lessee, or lien creditor which arise between the time the security interest attaches and the time of filing.\nL.2001, c.117, s.1; amended 2001, c.386, s.33; 2013, c.65, s.16.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"34c5d9571d7de76a1e98f511033f0df519fdbc5a82491a98d3919687ec871f00","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-316","next":"us-nj/n.j.-stat.-12a-9-318"},"notice":"GroundRules: Original legal text. Not legal advice."}