Document ID: chunk:federal_register_of_legislation:C2024C00719:section:70
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 70
Character Range: 162201–163190

70  Priority of person who acquires a negotiable instrument or an interest in a negotiable instrument
 (1) This section applies if, by a consensual transaction, a person acquires an interest consisting of:
 (a) a negotiable instrument; or
 (b) an interest in a negotiable instrument.
 (2) The interest of the person in the negotiable instrument has priority over a perfected security interest in the negotiable instrument if:
 (a) the person gave value for the interest; and
 (b) the person:
 (i) in the case of a person who acquired the interest in the ordinary course of the person's business of acquiring interests of that kind—acquired the interest without actual or constructive knowledge that the acquisition constitutes a breach of the security agreement that provides for the security interest; or
 (ii) otherwise—acquired the interest without actual or constructive knowledge of the security interest; and
 (c) the person took possession or control of the negotiable instrument.