LD 2245
pg. 11
Page 10 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 12 of 493
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LR 1087
Item 1

 
possession (or, in the case of electronic chattel paper, obtain
control) of the collateral depending on whether a conflicting
security interest in the collateral is claimed merely as
proceeds. The principal change relates to the role of knowledge
and the effect of an indication of a previous assignment of the
collateral. Section 9-330 [Maine cite section 9-1330] also
affords priority to purchasers of instruments who take possession
in good faith and without knowledge that the purchase violates
the rights of the competing secured party. In addition, to
qualify for priority, purchasers of chattel paper, but not of
instruments, must purchase in the ordinary course of business.

 
Proceeds. Section 9-322 [Maine cite section 9-1322] contains
new priority rules that clarify when a special priority of a
security interest in collateral continues or does not continue
with respect to proceeds of the collateral. Other refinements to
the priority rules for proceeds are included in Sections 9-324
[Maine cite section 9-1324] (purchase-money security interest
priority) and 9-330 [Maine cite section 9-1330] (priority of
certain purchasers of chattel paper and instruments).

 
Miscellaneous priority provisions. This Article also includes
(i) clarifications of selected good-faith-purchase and similar
issues (Sections 9-317, 9-331) [Maine cite sections 9-1317, 9-
1331]; (ii) new priority rules to deal with the "double debtor"
problem arising when a debtor creates a security interest in
collateral acquired by the debtor subject to a security interest
created by another person (Section 9-325) [Maine cite section 9-
1325]; (iii) new priority rules to deal with the problems created
when a change in corporate structure or the like results in a new
entity that has become bound by the original debtor's after-
acquired property agreement (Section 9-326) [Maine cite section
9-1326]; (iv) a provision enabling most transferees of funds from
a deposit account or money to take free of a security interest
(Section 9-332) [Maine cite section 9-1332]; (v) substantially
rewritten and refined priority rules dealing with accessions and
commingled goods (Sections 9-335, 9-336) [Maine cite sections 9-
1335, 9-1336]; (vi) revised priority rules for security interests
in goods covered by a certificate of title (Section 9-337) [Maine
cite section 9-1337]; and (vii) provisions designed to ensure
that security interests in deposit accounts will not extend to
most transferees of funds on deposit or payees from deposit
accounts and will not otherwise "clog" the payments system
(Sections 9-341, 9-342) [Maine cite sections 9-1341, 9-1342].

 
Model provisions relating to production-money security
interests. Appendix II to this Article contains model
definitions and priority rules relating to "production-money
security interests" held by secured parties who give new value


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