Section 39
Priority of creditor who receives payment of debt
A creditor who receives payment of a debt owing by a debtor through any payment system shall receive the payment free of a security interest whether or not the creditor had knowledge of the security interest at the time of the payment.
Priority of purchaser of negotiable instrument, document of title, chattel paper and security certificate 40.
A purchaser of a negotiable instrument, document of title, chattel paper or security certificate shall have priority over a perfected security interest in the negotiable instrument, document of title, chattel paper or security certificate if the purchaser —
Secured Transactions
B.L.R.O. 8/2022 29
(a)
gave value;
(b)
acquired the negotiable instrument, document of title, chattel paper or security certificate without knowledge that the transaction is a breach of the security agreement to which the security interest relates; and
(c)
took possession of the negotiable instrument, document of title, chattel paper or security certificate.