(1) A buyer or lessee of personal property, for new value, that the buyer or lessee intends (at the time of purchase or lease) to use predominantly for personal, domestic or household purposes takes the personal property free of a security interest in the property if the market value (worked out at the time each part of the total new value is given) of the total new value given for the personal property is not more than:
(a) $5,000; or
(b) if a greater amount has been prescribed by regulations for the purposes of this subsection--that amount.
(2) Subsection (1) does not apply if:
(a) the personal property is of a kind that the regulations provide may, or must, be described by serial number in a registration; or
(b) the buyer or lessee buys or leases the personal property with actual or constructive knowledge that the sale or lease constitutes a breach of the security agreement that provides for the security interest; or
(c) at the time the contract or agreement providing for the sale or lease is entered into, the buyer or lessee believes, and it is actually the case, that the market value of the personal property is more than:
(i) $5,000; or
(ii) if a greater amount has been prescribed by regulations for the purposes of this paragraph--that amount.