Section 34

The rights of a debtor in collateral may be transferred despite a provision in the security agreement prohibiting transfer or declaring a transfer to be a default.

No transfer by the debtor shall prejudice the rights of the secured party under the security agreement, including the right to treat a prohibited transfer as an act of default.

In this section, “transfer” includes a sale, the creation of a security interest or a transfer under judicial enforcement proceedings.

General priority of security interests in transferred collateral over security interests granted by transferee 35.

Where a debtor transfers an interest in the collateral that, at the time of the transfer, is subject to a perfected security interest, that security interest shall have priority over any other security interest granted by the transferee.