Section 9--330. Priority of Purchaser of Chattel Paper or Instrument.

(a) Purchaser's priority: security interest claimed merely as
proceeds. A purchaser of chattel paper has priority over a security
interest in the chattel paper which is claimed merely as proceeds of
inventory subject to a security interest if:

(1) in good faith and in the ordinary course of the purchaser's

business, the purchaser gives new value and takes possession

of the chattel paper or obtains control of the chattel paper

under Section 9--105; and

(2) the chattel paper does not indicate that it has been assigned

to an identified assignee other than the purchaser.

(b) Purchaser's priority: other security interests. A purchaser of
chattel paper has priority over a security interest in the chattel paper
which is claimed other than merely as proceeds of inventory subject to a
security interest if the purchaser gives new value and takes possession
of the chattel paper or obtains control of the chattel paper under
Section 9--105 in good faith, in the ordinary course of the purchaser's
business, and without knowledge that the purchase violates the rights of
the secured party.

(c) Chattel paper purchaser's priority in proceeds. Except as
otherwise provided in Section 9--327, a purchaser having priority in
chattel paper under subsection (a) or (b) also has priority in proceeds
of the chattel paper to the extent that:

(1) Section 9--322 provides for priority in the proceeds; or

(2) the proceeds consist of the specific goods covered by the

chattel paper or cash proceeds of the specific goods, even if

the purchaser's security interest in the proceeds is

unperfected.

(d) Instrument purchaser's priority. Except as otherwise provided in
Section 9--331(a), a purchaser of an instrument has priority over a
security interest in the instrument perfected by a method other than
possession if the purchaser gives value and takes possession of the
instrument in good faith and without knowledge that the purchase
violates the rights of the secured party.

(e) Holder of purchase-money security interest gives new value. For
purposes of subsections (a) and (b), the holder of a purchase-money
security interest in inventory gives new value for chattel paper
constituting proceeds of the inventory.

(f) Indication of assignment gives knowledge. For purposes of
subsections (b) and (d), if chattel paper or an instrument indicates
that it has been assigned to an identified secured party other than the
purchaser, a purchaser of the chattel paper or instrument has knowledge
that the purchase violates the rights of the secured party.