In this lesson, we’ll learn about a purchaser’s position relative to a competing claimant to the same collateral.

I. Purchasers vs. Perfected and Unperfected Secured Parties

Recall the general rule that a security agreement is effective against third parties, including purchasers of the collateral. See UCC § 9-201(a). Recall also that a “security interest . . . continues in collateral notwithstanding sale, lease, license, exchange, or other disposition thereof . . . .” See UCC § 9-315(a)(1).