Article 9 of the Uniform Commercial Code (UCC) governs any transaction which creates a security interest in personal property or fixtures. Generally when there is a conflict between secured parties in the same collateral, the UCC’s default priority rule declares the first secured party to file a financing statement or perfect its interest to have priority. However, section 9-308 creates an exception to this default rule when the security interest is claimed in chattel paper. Chattel paper is a group of writings taken together that evidence both a monetary obligation and a security interest in or a lease of specific goods. Section 9-308 gives priority to a purchaser of chattel paper that perfects its interest in the chattel paper by taking possession. This thesis reviews Article 9’s “first-to-file” rule and critiques the exception to this rule found in section 9-308, with the author suggesting section 9-308 is unnecessary and should be deleted.
Wilson, Joseph, "Priorities in Chattel Paper: Analysis of § 9-308 of the U.C.C." (1995). LLM Theses and Essays. 127.