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HRS §490:9-320

When buyers get goods free of a lender's claim

This section explains when a buyer can keep goods even if the seller owed money on them. In many cases, a regular buyer takes the goods free of the seller's lender's claim. There are special rules for personal or household goods and for oil, gas, or minerals.

buyers

The statute, as written — Buyer of goods

(a) Except as otherwise provided in subsection (e), a buyer in ordinary course of business, other than a person buying farm products from a person engaged in farming operations, takes free of a security interest created by the buyer's seller, even if the security interest is perfected and the buyer knows of its existence. (b) Except as otherwise provided in subsection (e), a buyer of goods from a person who used or bought the goods for use primarily for personal, family, or household purposes takes free of a security interest, even if perfected, if the buyer buys: (1) Without knowledge of the security interest; (2) For value; (3) Primarily for the buyer's personal, family, or household purposes; and (4) Before the filing of a financing statement covering the goods. (c) To the extent that it affects the priority of a security interest over a buyer of goods under subsection (b), the period of effectiveness of a filing made in the jurisdiction in which the seller is located is governed by section 490:9-316(a) and (b). (d) A buyer in ordinary course of business buying oil, gas, or other minerals at the wellhead or minehead or after extraction takes free of an interest arising out of an encumbrance. (e) Subsections (a) and (b) do not affect a security interest in goods in the possession of the secured party under section 490:9-313.
Read the official text at capitol.hawaii.gov ↗as published Jan 6, 2026our copy taken Aug 20, 2026

Sections this one refers to

§490:9-316 What happens to a security interest when the debtor or collateral moves

LawTrove is not legal advice. The summary above is a computer-generated restatement — the authoritative text is the official version linked above.