Example 2: SP1 delivers goods to Debtor in a transaction constituting a "consignment" as defined in Section 9-102 [Maine cite section 9-1102]. SP1 files a proper financing statement. Debtor then grants a security interest in the goods to SP2. Under Section 9-322 [Maine cite section 9-1322], SP-1's security interest is senior to SP-2's. Subsection (b) [Maine cite subsection (2)] indicates that, for purposes of determining SP- 2's rights, other law determines the rights and title of the consignee. If, for example, a consignee obtains only the special property of a bailee, then SP-2's security interest would attach only to that special property.

Example 3: SP-1 obtains a security interest in all Debtor's existing and after-acquired inventory. SP-1 perfects its security interest with a proper filing. Then SP2 delivers goods to Debtor in a transaction constituting a "consignment" as defined in Section 9-102 [Maine cite section 9-1102]. SP2 files a proper financing statement but does not send notification to SP-1 under Section 9-324(b) [Maine cite section 9-1324, subsection (2)]. Accordingly, SP-2's security interest is junior to SP-1's under Section 9-322(a) [Maine cite section 9-1322, subsection (1)]. Under Section 9-319(a) [Maine cite section 9- 1319, subsection (1)], Debtor is deemed to have the consignor's rights and title, so that SP-1's security interest attaches to SP-2's ownership interest in the goods. Thereafter, Debtor grants a security interest in the goods to SP-3, and SP-3 perfects by filing. Because SP-2's perfected security interest is senior to SP-3's under Section 9-322(a) [Maine cite section 9- 1322, subsection (1)], Section 9-319(b) [Maine cite section 9- 1319, subsection (2)] applies: Other law determines Debtor's rights and title to the goods insofar as SP-3 is concerned, and SP-3's security interest attaches to those rights.

§9-1320.__Buyer of goods

(1)__Except as otherwise provided in subsection (5), 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.