Example: Debtor sells accounts or chattel paper to Buyer1 and retains no interest in them. Buyer1 does not file a financing statement. Debtor then sells the same receivables to Buyer2. Buyer2 files a proper financing statement. Having sold the receivables to Buyer1, Debtor would not have any rights in the collateral so as to permit Buyer2's security (ownership) interest to attach. Nevertheless, under this section, for purposes of determining the rights of purchasers for value from Debtor, Debtor is deemed to have the rights that Debtor sold. Accordingly, Buyer2's security interest attaches, is perfected by the filing, and, under Section 9-322 [Maine cite section 9-1322], is senior to Buyer1's interest.

4. Effect of Perfection. If the security interest of a buyer of accounts or chattel paper is perfected the usual result would take effect: transferees from and creditors of the seller could not acquire an interest in the sold accounts or chattel paper. The same result would occur if payment intangibles or promissory notes were sold, inasmuch as the buyer's security interest is automatically perfected under Section 9-309 [Maine cite section 9-1309].

§9-1319.__Rights and title of consignee with respect to creditors

and purchasers

(1)__Except as otherwise provided in subsection (2), for purposes of determining the rights of creditors of, and purchasers for value of goods from, a consignee, while the goods are in the possession of the consignee, the consignee is deemed to have rights and title to the goods identical to those the consignor had or had power to transfer.

(2)__For purposes of determining the rights of a creditor of a consignee, law other than this Article determines the rights and title of a consignee while goods are in the consignee's possession if, under this Part, a perfected security interest held by the consignor would have priority over the rights of the creditor.

Official Comment

1. Source. New.

2. Consignments. This section takes an approach to consignments similar to that taken by Section 9-318 [Maine cite section 9-1318] with respect to buyers of accounts and chattel paper. Revised Section 1-201(37) defines "security interest" to