§490:9-324  Priority of purchase-money
security interests.  (a)  Except as otherwise provided in subsection (g), 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 490:9-327, 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) and except as
otherwise provided in subsection (g), 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 490:9-330, and, except as
otherwise provided in section 490:9-327, 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)(2) through (4) applies 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 490:9-312(f),
before the beginning of the twenty-day period thereunder.



(d)  Subject to subsection (e) and except as
otherwise provided in subsection (g), 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 490:9-327, 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)(2) through (4) applies 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 490:9-312(f),
before the beginning of the twenty-day period thereunder.



(f)  Except as otherwise provided in subsection
(g), 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 490:9-327, 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):



(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 490:9-322(a) applies
to the qualifying security interests. [L 2000, c 241, pt of §1]