Sec. 332. (a) A transferee of money takes the money free of a security interest if the transferee receives possession of the money without acting in collusion with the debtor in violating the rights of the secured party.

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Terms Used In Indiana Code 26-1-9.1-332

  • takes the funds free: when used in conjunction with a security interest in collateral which is transferred, means that following the transfer the collateral is no longer encumbered by the security interest and the security interest is terminated with respect to the transferred collateral. See Indiana Code 26-1-9.1-102.5
     (b) A transferee of funds from a deposit account takes the funds free of a security interest in the deposit account if the transferee receives the funds without acting in collusion with the debtor in violating the rights of the secured party.

As added by P.L.57-2000, SEC.45. Amended by P.L.199-2023, SEC.68.

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