When the title of a transferee to property is subject to a defect by reason of his non-compliance with the requirements of this Article, then:
(1) a purchaser of any of such property from such transferee who pays no value or who takes with notice of such non-compliance takes subject to such defect, but
(2) a purchaser for value in good faith and without such notice takes free of such defect.
NOTES: UNIFORM LAWS COMMENT: Prior Uniform Statutory Provision: None.
Purposes:
1. The section deals with subsequent transfers by the transferee.
2. The second transfer may of course itself be a "bulk transfer" subject to this Article. Whether it is or not will depend on its own character under Sections 6-102 and 6-103. Cross References: Point 2: Sections 6-102 and 6-103.
Definitional Cross References:
"Good faith". Section 1-201.
"Notice". Section 1-201.
"Purchaser". Section 1-201.
"Value". Section 1-201.
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