§490:9-334  Priority of security interests
in fixtures and crops.  (a)  A security interest under this article may be
created in goods that are fixtures or may continue in goods that become
fixtures.  A security interest does not exist under this article in ordinary
building materials incorporated into an improvement on land.



(b)  This article does not prevent creation of
an encumbrance upon fixtures under real property law.



(c)  In cases not governed by subsections (d)
through (h), a security interest in fixtures is subordinate to a conflicting
interest of an encumbrancer or owner of the related real property other than
the debtor.



(d)  Except as otherwise provided in subsection
(h), a perfected security interest in fixtures has priority over a conflicting
interest of an encumbrancer or owner of the real property if the debtor has an
interest of record in or is in possession of the real property and:



(1)  The security interest is a purchase-money
security interest;



(2)  The interest of the encumbrancer or owner arises
before the goods become fixtures; and



(3)  The security interest is perfected by a fixture
filing before the goods become fixtures or within twenty days thereafter.



(e)  A perfected security interest in fixtures
has priority over a conflicting interest of an encumbrancer or owner of the
real property if:



(1)  The debtor has an interest of record in the real
property or is in possession of the real property and the security interest:



(A)  Is perfected by a fixture filing before
the interest of the encumbrancer or owner is of record; and



(B)  Has priority over any conflicting interest
of a predecessor in title of the encumbrancer or owner;



(2)  Before the goods become fixtures, the security
interest is perfected by any method permitted by this article and the fixtures
are readily removable:



(A)  Factory or office machines;



(B)  Equipment that is not primarily used or
leased for use in the operation of the real property; or



(C)  Replacements of domestic appliances that
are consumer goods;



(3)  The conflicting interest is a lien on the real
property obtained by legal or equitable proceedings after the security interest
was perfected by any method permitted by this article; or



(4)  The security interest is:



(A)  Created in a manufactured home in a
manufactured-home transaction; and



(B)  Perfected pursuant to a statute described
in section 490:9-311(a)(2).



(f)  A security interest in fixtures, whether
or not perfected, has priority over a conflicting interest of an encumbrancer
or owner of the real property if:



(1)  The encumbrancer or owner has, in an
authenticated record, consented to the security interest or disclaimed an
interest in the goods as fixtures; or



(2)  The debtor has a right to remove the goods as
against the encumbrancer or owner.



(g)  The priority of the security interest
under subsection (f) continues for a reasonable time if the debtor's right to
remove the goods as against the encumbrancer or owner terminates.



(h)  A mortgage is a construction mortgage to
the extent that it secures an obligation incurred for the construction of an
improvement on land, including the acquisition cost of the land, if a recorded
record of the mortgage so indicates.  Except as otherwise provided in
subsections (e) and (f), a security interest in fixtures is subordinate to a
construction mortgage if a record of the mortgage is recorded before the goods
become fixtures and the goods become fixtures before the completion of the
construction.  A mortgage has this priority to the same extent as a construction
mortgage to the extent that it is given to refinance a construction mortgage.



(i)  A perfected security interest in crops
growing on real property has priority over a conflicting interest of an
encumbrancer or owner of the real property if the debtor has an interest of
record in or is in possession of the real property. [L 2000, c 241, pt of §1]