Tex. Bus. & Com. Code § 9.318

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

Known as the Uniform Commercial Code

The act spans §§ 1.101 to 12.004 (616 sections).

Applied in 3 court decisions — leading case Apex Oil Company v. (2002)

Most recently applied in Great-West Life & Annuity Insurance Co. v. Texas Attorney General Child Support Division (February 2011)

Amended by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff

How often courts cite this section

citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(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: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.