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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=46720 Justice Harkavy A NEW Jersey corporation, Malcar Leasing Inc., (MLI) assigned motor vehicle leases to plaintiff. After the 1994 revocation of its charter Malcar Leasing Inc. reformed in New York as Malcar Leasing Corp (MLC). Defendant extended credit for MLC’s purchase of an inventory of rental vehicles. Uniform Commercial Code financing statements perfected its Feb. 25, 2002 security agreement. In an ownership dispute, defendant asserted that it held a security interest superior to plaintiff, which argued that as a buyer in the course of ordinary business under UCC 9-320(a) it took the vehicles clear of defendant’s security interest. The court held that defendant held the superior security interest and that MLI’s 2002 transfer to plaintiff did not qualify as a sale in the ordinary course of business under UCC 9-320(a). Because MLI lacked title to the vehicles, there was no evidence, for purposes of UCC 2-403(a), that plaintiff acquired title to or interest in the cars.

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