Part 4 — Judgments and Writs Division 1 Registration
38 Transferees and purchasers of funds and negotiable property
a person who acquires a security interest in the money, the account
or the instrument.
(2) A transferee of money takes free from a writ binding the
money if the transferee
(a) acquired the money
(i) without knowledge of the writ, or
(ii) for value, whether or not the transferee had knowledge
of the writ,
and
(b) took possession of the money.
(3) Subject to subsection (5), a transferee of funds received by
transfer from a deposit account takes free from a writ binding the
account if the transferee acquired the funds
(a) without knowledge of the writ, or
(b) for value, whether or not the transferee had knowledge of
the writ.
(4) A transferee of an instrument drawn by an enforcement debtor
and payable to the transferee takes free from a writ binding the
instrument and the account on which the instrument is drawn if the
transferee
(a) acquired the instrument
(i) without knowledge of the writ, or
(ii) for value, whether or not the transferee had knowledge
of the writ,
and
(b) took possession of the instrument.
(5) A financial institution that receives payment of a debt by
means of a transfer from or debit to a deposit account of an
enforcement debtor held by the institution takes free from a writ
binding the account only if the payment
RSA 2000
(a) is authorized by the enforc ement debtor at or after the time
the debt is payable by the debtor to the financial institution
and the authorization of payment is not made by the
financial institution as agent of the debtor,
(b) is made by a post-dated cheque drawn by the enforcement
debtor, or
(c) is made under a written authorization that is signed by the
enforcement debtor as part of a loan under which the debtor
became indebted to the financial institution, and the written
authorization
(i) sets out specified amounts to be debited to or transferred
from the deposit account at specified times or intervals,
or
(ii) authorizes debits to or tr ansfers from the deposit account
when the credit in the deposit account exceeds a
specified amount,
and the payment is not made by the financial institution as agent of
the debtor.
(6) Nothing in subsection (5) limits the rights of an account debtor
provided in section 41 of the Personal Property Security Act.
(7) A purchaser of an instrument or a negotiable document of title
has priority over a writ binding the instrument or negotiable
document of title if the purchaser
(a) acquired the instrument o r negotiable document of title for
value without knowledge of the writ, and
(b) took possession of the instrument or negotiable document of
title.
(8) A purchaser of chattel paper has priority over a writ binding
the chattel paper if the purchaser
(a) acquired the chattel paper for new value in the ordinary
course of the purchaser's business, and
(b) without knowledge of the writ, took possession of tangible
chattel paper or obtained control of electronic chattel paper.
RSA 2000 cC-15 s38;2006 cS-4.5 s107;2023 c5 s2