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A.R.S. § 47-9318

No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers

Applied in 3 court decisions — leading case Dewhirst v. Citibank (1988)

Most recently applied in Harris v. Dial Corp. (January 1992)

A. A debtor that has sold an account, chattel paper, payment intangible or promissory note does not retain a legal or equitable interest in the collateral sold.

B. For purposes of determining the rights of creditors of, and purchasers for value of an account or chattel paper from, a debtor that has sold an account or chattel paper, while the buyer's security interest is unperfected, the debtor is deemed to have rights and title to the account or chattel paper identical to those the debtor sold.

Official source: Arizona State Legislature. Reproduced from public-domain Arizona statutes; confirm against the official source for the current text. Not legal advice.