Secured Transaction Act, 2063 (2006)
Section 41
Purchase Of Secured Sales Contracts And Instruments
A purchaser of a
secured sales contract or an instrument shall, in the following circumstances,
have priority over a conflicting security interest in the secured sales contract or
instrument and also over the proceeds of such contract or instrument:
(a) Where, the purchaser in the ordinary course of business gives new value
and takes possession of the secured sales contract or instrument; and
(b) Where the secured sales contract or instrument does not indicate that it
has been assigned to the person holding the conflicting security interest.
Secured Transaction Act, 2063 (2006)
Chapter - 4
Section 26: Maturality Of Security InterestSection 27: Continuity Of MaturitySection 28: Priority Among Security Interests In The Same CollateralSection 29: Priority Of Security Interest Over Right Of Lien HolderSection 30: Effect Of Purchase Of CollateralSection 31: Lessee Of CollateralSection 32: Notice Of Purchase Money Security InterestSection 33: Disposition Of Collateral And Proceed ThereofSection 34: Priority Of Purchase Money Security Interest In EquipmentSection 35: Priority Of Purchase Money Security Interest In Inventory Or LivestockSection 36: Priority Of Right Of RetentionSection 37: FixturesSection 38: CropsSection 39: AccessionsSection 40: Commingled GoodsSection 41: Purchase Of Secured Sales Contracts And InstrumentsSection 42: AssignmentSection 43: Restriction On Sale Or AssignmentSection 44: Future AdvancesSection 45: Alteration In Priority