Rights of holder in due course of negotiable instrument, holder of negotiable document of title, or protected purchaser of security--Rights of person protected under chapter 57A-8.

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57A-9-331. Rights of holder in due course of negotiable instrument, holder of negotiable document of title, or protected purchaser of security--Rights of person protected under chapter 57A-8.

(a) This chapter does not limit the rights of a holder in due course of a negotiable instrument, a holder to which a negotiable document of title has been duly negotiated, or a protected purchaser of a security. These holders or purchasers take priority over an earlier security interest, even if perfected, to the extent provided in chapters 57A-3, 57A-7, and 57A-8.

(b) This chapter does not limit the rights of or impose liability on a person to the extent that the person is protected against the assertion of a claim under chapter 57A-8.

(c) Filing under this article does not constitute notice of a claim or defense to the holders, or purchasers, or persons described in subsections (a) and (b).

Source: SL 2000, ch 231.


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