If a buyer purchases chattel paper in the ordinary course of business and is unaware of any applicable security interest, the buyer can obtain the good free of any security interest.

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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, or an instrument, a writing that demonstrates a right to payment of money, in the ordinary course of business, the buyer can obtain the good free of any security interest; but the buyer must typically be unaware of the security interest in the good.

If a Buyer Purchases Chattel Paper in the Ordinary Course