If a buyer purchases chattel paper in the ordinary course of business and without notice of any prior security interest,the buyer can obtain the good involved free of any security interest.

Question

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If a buyer purchases chattel paper, a writing that indicates both a monetary obligation and a security interest in specific goods, in the ordinary course of business, the buyer can obtain the good free of any security interest. The buyer must typically be unaware of the security interest in the good.

If a Buyer Purchases Chattel Paper in the Ordinary Course