Transfer of money - transfer of funds from deposit account.

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(a) A transferee of money takes the money free of a security interest unless the transferee acts in collusion with the debtor in violating the rights of the secured party.

(b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account unless the transferee acts in collusion with the debtor in violating the rights of the secured party.

Source: L. 2001: Entire article R&RE, p. 1366, § 1, effective July 1.


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