Idaho State Statutes - Idaho Attorney Directory

(a) A
purchaser of chattel paper has priority over a security interest in the
chattel paper which is claimed merely as proceeds of inventory subject to a
security interest if:
(1) In good faith and in the ordinary course of the purchaser's business,
the purchaser gives new value and takes possession of the chattel paper or
obtains control of the chattel paper under section 28-9-105; and
(2) The chattel paper does not indicate that it has been assigned to an
identified assignee other than the purchaser.
(b) A purchaser of chattel paper has priority over a security interest in
the chattel paper which is claimed other than merely as proceeds of inventory
subject to a security interest if the purchaser gives new value and takes
possession of the chattel paper or obtains control of the chattel paper under
section 28-9-105 in good faith, in the ordinary course of the purchaser's
business, and without knowledge that the purchase violates the rights of the
secured party.
(c) Except as otherwise provided in section 28-9-327, a purchaser having
priority in chattel paper under subsection (a) or (b) of this section also has
priority in proceeds of the chattel paper to the extent that:
(1) Section 28-9-322 provides for priority in the proceeds; or
(2) The proceeds consist of the specific goods covered by the chattel
paper or cash proceeds of the specific goods, even if the purchaser's
security interest in the proceeds is unperfected.
(d) Except as otherwise provided in section 28-9-331(a), a purchaser of
an instrument has priority over a security interest in the instrument
perfected by a method other than possession if the purchaser gives value and
takes possession of the instrument in good faith and without knowledge that
the purchase violates the rights of the secured party.
(e) For purposes of subsections (a) and (b) of this section, the holder
of a purchase-money security interest in inventory gives new value for chattel
paper constituting proceeds of the inventory.
(f) For purposes of subsections (b) and (d) of this section, if chattel
paper or an instrument indicates that it has been assigned to an identified
secured party other than the purchaser, a purchaser of the chattel paper or
instrument has knowledge that the purchase violates the rights of the secured
party.

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