Code of Alabama

Ala. Code § 7-9-309 (2026)

Protection of Purchasers of Instruments and Documents.

✓ official Alabama Legislature (ALISON) text, current July 2026
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Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.

(Acts 1965, No. 549, p. 811; Acts 1996, No. 96-742, p. 1241, §2.)

Notes of Decisions
Cited in 2 cases, 1991–1993 · leading case: Util. Contractors Fin. Servs., Inc. v. AmSouth Bank, N.A. (In Re Joe Morgan, Inc.), 130 B.R. 331 (Bankr. S.D. Ala. 1991).
Util. Contractors Fin. Servs., Inc. v. AmSouth Bank, N.A. (In Re Joe Morgan, Inc.), 130 B.R. 331 (Bankr. S.D. Ala. 1991). · cites it 2× “Pre-July 17, 1989 Accounts UCON is a holder in due course under § 7-9-309 of the Code of Alabama (1975) and therefore has priority over Sunburst’s prior security interest.”
Util. Contractors Fin. Servs., Inc. v. Amsouth Bank N.A. (In re Joe Morgan, Inc.), 985 F.2d 1554 (11th Cir. 1993). · cites it 2× “If it is, then we must decide whether, pursuant to Ala.Code § 7-9-309, UCON, as an HDC, has a priority interest in checks it received in payment on accounts receivable which were purchased from JMI, notwithstanding Sunburst’s senior, perfected security interest in those…”
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