47-9324

47-9324. Priority of purchase money security
interests

A. Except as otherwise provided in subsection G of this section, a perfected
purchase money security interest in goods other than inventory or livestock has priority
over a conflicting security interest in the same goods, and, except as otherwise provided
in section 47-9327, a perfected security interest in its identifiable proceeds also has
priority, if the purchase money security interest is perfected when the debtor receives
possession of the collateral or within twenty days thereafter.

B. Subject to subsection C of this section and except as otherwise provided in
subsection G of this section, a perfected purchase money security interest in inventory
has priority over a conflicting security interest in the same inventory, has priority
over a conflicting security interest in chattel paper or an instrument constituting
proceeds of the inventory and in proceeds of the chattel paper, if so provided in section
47-9330, and, except as otherwise provided in section 47-9327, also has priority in
identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds
are received on or before the delivery of the inventory to a buyer, if:

1. The purchase money security interest is perfected when the debtor receives
possession of the inventory;

2. The purchase money secured party sends an authenticated notification to the
holder of the conflicting security interest;

3. The holder of the conflicting security interest receives the notification within
five years before the debtor receives possession of the inventory; and

4. The notification states that the person sending the notification has or expects
to acquire a purchase money security interest in inventory of the debtor and describes
the inventory.

C. Subsection B, paragraphs 2, 3 and 4 of this section apply only if the holder of
the conflicting security interest had filed a financing statement covering the same types
of inventory:

1. If the purchase money security interest is perfected by filing, before the date
of the filing; or

2. If the purchase money security interest is temporarily perfected without filing
or possession under section 47-9312, subsection F, before the beginning of the twenty day
period thereunder.

D. Subject to subsection E of this section and except as otherwise provided in
subsection G of this section, a perfected purchase money security interest in livestock
that are farm products has priority over a conflicting security interest in the same
livestock, and, except as otherwise provided in section 47-9327, a perfected security
interest in their identifiable proceeds and identifiable products in their unmanufactured
states also has priority, if:

1. The purchase money security interest is perfected when the debtor receives
possession of the livestock;

2. The purchase money secured party sends an authenticated notification to the
holder of the conflicting security interest;

3. The holder of the conflicting security interest receives the notification within
six months before the debtor receives possession of the livestock; and

4. The notification states that the person sending the notification has or expects
to acquire a purchase money security interest in livestock of the debtor and describes
the livestock.

E. Subsection D, paragraphs 2, 3 and 4 of this section apply only if the holder of
the conflicting security interest had filed a financing statement covering the same types
of livestock:

1. If the purchase money security interest is perfected by filing, before the date
of the filing; or

2. If the purchase money security interest is temporarily perfected without filing
or possession under section 47-9312, subsection F, before the beginning of the twenty day
period thereunder.

F. Except as otherwise provided in subsection G of this section, a perfected
purchase money security interest in software has priority over a conflicting security
interest in the same collateral, and, except as otherwise provided in section 47-9327, a
perfected security interest in its identifiable proceeds also has priority, to the extent
that the purchase money security interest in the goods in which the software was acquired
for use has priority in the goods and proceeds of the goods under this section.

G. If more than one security interest qualifies for priority in the same collateral
under subsection A, B, D or F of this section:

1. A security interest securing an obligation incurred as all or part of the price
of the collateral has priority over a security interest securing an obligation incurred
for value given to enable the debtor to acquire rights in or the use of collateral; and

2. In all other cases, section 47-9322, subsection A applies to the qualifying
security interests.