LD 2245
pg. 192
Page 191 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 193 of 493
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LR 1087
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filed against consumer goods. Occasionally, a debtor changes his
or her location after a filing is made. Subsection (c) [Maine
cite subsection (3)], which derives from former Section 9-
103(1)(d)(iii), deals with the continued effectiveness of the
filing under those circumstances. It adopts the rules of
Sections 9-316(a) and (b) [Maine cite section 9-1316, subsections
(1) and (2)]. These rules are explained in the Comments to that
section.

 
6. Authorized Dispositions. The limitations that subsections
(a) and (b) [Maine cite subsections (1) and (2)] impose on the
persons who may take free of a security interest apply of course
only to unauthorized sales by the debtor. If the secured party
authorized the sale in an express agreement or otherwise, the
buyer takes free under Section 9-315(a) [Maine cite section 9-
1315, subsection (1)] without regard to the limitations of this
section. (That section also states the right of a secured party
to the proceeds of a sale, authorized or unauthorized.)
Moreover, the buyer also takes free if the secured party waived
or otherwise is precluded from asserting its security interest
against the buyer. See Section 1-103.

 
7. Oil, Gas and Other Minerals. Under subsection (d) [Maine
cite subsection (4)], a buyer in ordinary course of business of
minerals at the wellhead or minehead or after extraction takes
free of a security interest created by the seller. Specifically,
it provides that qualified buyers take free not only of Article 9
[Maine cite Article 9-A] security interests but also of interests
"arising out of an encumbrance." As defined in Section 9-102
[Maine cite section 9-1102], the term "encumbrance" means "a
right, other than an ownership interest, in real property."
Thus, to the extent that a mortgage encumbers minerals not only
before but also after extraction, subsection (d) [Maine cite
subsection (4)] enables a buyer in ordinary course of the
minerals to take free of the mortgage. This subsection does not,
however, enable these buyers to take free of interests arising
out of ownership interests in the real property. This issue is
significant only in a minority of states. Several of them have
adopted special statutes and nonuniform amendments to Article 9
to provide special protections to mineral owners, whose interests
often are highly fractionalized in the case of oil and gas. See
Terry I. Cross, Oil and Gas Product Liens--Statutory Security
Interests for Producers and Royalty Owners Under the Statutes of
Kansas, New Mexico, Oklahoma, Texas and Wyoming, 50 Consumer Fin.
L. Q. Rep. 418 (1996). Inasmuch as a complete resolution of the
issue would require the addition of complex provisions to this
Article, and there are good reasons to believe that a uniform
solution would not be feasible, this Article leaves its
resolution to other legislation.


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