If a security interest or agricultural lien is perfected by a filed financing statement providing information that is described in section 47-9516, subsection B, paragraph 5 and that is incorrect at the time the financing statement is filed:

Terms Used In Arizona Laws 47-9338

  • Agricultural lien: means an interest, other than a security interest, in farm products:

    (a) That secures payment or performance of an obligation for:

    (i) Goods or services furnished in connection with a debtor's farming operation; or

    (ii) Rent on real property leased by a debtor in connection with its farming operation;

    (b) That is created by statute in favor of a person that:

    (i) In the ordinary course of its business furnished goods or services to a debtor in connection with a debtor's farming operation; or

    (ii) Leased real property to a debtor in connection with the debtor's farming operation; and

    (c) Whose effectiveness does not depend on the person's possession of the personal property. See Arizona Laws 47-9102

  • Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and software used in the goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Arizona Laws 47-9102
  • Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
  • Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Arizona Laws 47-9102
  • Goods: means all things that are movable when a security interest attaches. See Arizona Laws 47-9102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Secured party: means :

    (a) A person in whose favor a security interest is created or provided for under a security agreement, whether or not any obligation to be secured is outstanding;

    (b) A person that holds an agricultural lien;

    (c) A consignor;

    (d) A person to which accounts, chattel paper, payment intangibles or promissory notes have been sold;

    (e) A trustee, indenture trustee, agent, collateral agent or other representative in whose favor a security interest or agricultural lien is created or provided for; or

    (f) A person that holds a security interest arising under section 47-2401, 47-2505, 47-2711, 47-2A508, 47-4210 or 47-5118. See Arizona Laws 47-9102

1. The security interest or agricultural lien is subordinate to a conflicting perfected security interest in the collateral to the extent that the holder of the conflicting security interest gives value in reasonable reliance on the incorrect information; and

2. A purchaser, other than a secured party, of the collateral takes free of the security interest or agricultural lien to the extent that, in reasonable reliance on the incorrect information, the purchaser gives value and, in the case of tangible chattel paper, tangible documents, goods, instruments or a security certificate, receives delivery of the collateral.

 

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