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84-9-337. Priority of security interests in goods covered by certificate of title. If, while a security interest in goods is perfected by any method under the law of another jurisdiction, this state issues a certificate of title that does not show that the goods are subject to the security interest or contain a statement that they may be subject to security interests not shown on the certificate:

(1) A buyer of the goods, other than a person in the business of selling goods of that kind, takes free of the security interest if the buyer gives value and receives delivery of the goods after issuance of the certificate and without knowledge of the security interest; and

(2) the security interest is subordinate to a conflicting security interest in the goods that attaches, and is perfected under K.S.A. 2023 Supp. 84-9-311(b), and amendments thereto, after issuance of the certificate and without the conflicting secured party's knowledge of the security interest.

History: L. 2000, ch. 142, ยง 57; July 1, 2001.

CASE ANNOTATIONS

1. Buyer of vehicle at sheriff's sale did not take vehicle free of lender's security interest where there was no evidence that buyer gave value for the vehicle. Stanley Bank v. Parish, 46 Kan. App. 2d 422, 264 P.3d 491 (2011).


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