{"data":{"id":"us-nj/n.j.-stat.-12a-9-320","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-320","heading":"Buyer of goods.","body":"Buyer of Goods.\n(a)\tBuyer in ordinary course of business.  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.\n(b)\tBuyer of consumer goods.  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:\n(1)\twithout knowledge of the security interest;\n(2)\tfor value;\n(3)\tprimarily for the buyer's personal, family, or household purposes; and\n(4)\tbefore the filing of a financing statement covering the goods.\n(c)\tEffectiveness of filing for subsection (b).  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 12A:9-316 (a) and (b).\n(d)\tBuyer in ordinary course of business at wellhead or minehead. 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.\n(e)\tPossessory security interest not affected.  Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under 12A:9-313.\nL.2001, c.117, s.1; amended 2001, c.386, s.36.","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":"fce2760158f976f828c41a7fc9f18f528b6a55b684a9be295707d9bae6eadc0f","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-319","next":"us-nj/n.j.-stat.-12a-9-321"},"notice":"GroundRules: Original legal text. Not legal advice."}