LD 2245, Page 272 - 119th Legislature, FIRST REGULAR Session

	2. Effect of Incorrect Information in Financing Statement.
Section 9-520(a) [Maine cite section 9-1520, subsection (1)]
requires the filing office to reject financing statements that do
not contain information concerning the debtor as specified in
Section 9-516(b)(5) [Maine cite section 9-1516, subsection (2),
paragraph (e)]. A error in this information does not render the
financing statement ineffective. On rare occasions, a subsequent
purchaser of the collateral (i.e., a buyer or secured party) may
rely on the misinformation to its detriment. This section
subordinates a security interest or agricultural lien perfected by
an effective, but flawed, financing statement to the rights of a
buyer or holder of a perfected security interest to the extent
that, in reasonable reliance on the incorrect information, the
purchaser gives value and, in the case of tangible collateral,
receives delivery of the collateral. A purchaser who has not made
itself aware of the information in the filing office with respect
to the debtor cannot act in "reasonable reliance" upon incorrect
information.

3. Relationship to Section 9-507 [Maine cite 9-1507]. This
section applies to financing statements that contain information
that is incorrect at the time of filing and imposes a small risk
of subordination on the filer. In contrast, Section 9-507 [Maine
cite section 9-1507] deals with financing statements containing
information that is correct at the time of filing but which
becomes incorrect later. Except as provided in Section 9-507
[Maine cite section 9-1507] with respect to changes in the
debtor's name, an otherwise effective financing statement does
not become ineffective if the information contained in it becomes
inaccurate.

§9-1339.__Priority subject to subordination

This Article does not preclude subordination by agreement by a
person entitled to priority.

Official Comment

1. Source. Former Section 9-316.

2. Subordination by Agreement. The preceding sections deal
elaborately with questions of priority. This section makes it
entirely clear that a person entitled to priority may effectively
agree to subordinate its claim. Only the person entitled to
priority may make such an agreement: a person's rights cannot be
adversely affected by an agreement to which the person is not a
party.

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