§ 6A-9-103 Purchase-money securityinterest; application of payments; burden of establishing. – (a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software thatsecures a purchase-money obligation incurred with respect to that collateral;and
(2) "purchase-money obligation" means an obligation of anobligor incurred as all or part of the price of the collateral or for valuegiven to enable the debtor to acquire rights in or the use of the collateral ifthe value is in fact so used.
(b) Purchase-money security interest in goods. Asecurity interest in goods is a purchase-money security interest:
(1) to the extent that the goods are purchase-moneycollateral with respect to that security interest;
(2) if the security interest is in inventory that is or waspurchase-money collateral, also to the extent that the security interestsecures a purchase-money obligation incurred with respect to other inventory inwhich the secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures apurchase-money obligation incurred with respect to software in which thesecured party holds or held a purchase-money security interest.
(c) Purchase-money security interest in software. Asecurity interest in software is a purchase-money security interest to theextent that the security interest also secures a purchase-money obligationincurred with respect to goods in which the secured party holds or held apurchase-money security interest if:
(1) the debtor acquired its interest in the software in anintegrated transaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for theprincipal purpose of using the software in the goods.
(d) Consignor's inventory purchase-money securityinterest. The security interest of a consignor in goods that are thesubject of a consignment is a purchase-money security interest in inventory.
(e) Application of payment in non-consumer-goodstransaction. In a transaction other than a consumer-goods transaction, ifthe extent to which a security interest is a purchase-money security interestdepends on the application of a payment to a particular obligation, the paymentmust be applied:
(1) in accordance with any reasonable method of applicationto which the parties agree;
(2) in the absence of the parties' agreement to a reasonablemethod, in accordance with any intention of the obligor manifested at or beforethe time of payment; or
(3) in the absence of an agreement to a reasonable method anda timely manifestation of the obligor's intention, in the following order:
(i) to obligations that are not secured; and
(ii) if more than one obligation is secured, to obligationssecured by purchase-money security interests in the order in which thoseobligations were incurred.
(f) No loss of status of purchase-money security interestin non-consumer-goods transaction. In a transaction other than aconsumer-goods transaction, a purchase-money security interest does not loseits status as such, even if:
(1) the purchase-money collateral also secures an obligationthat is not a purchase-money obligation;
(2) collateral that is not purchase-money collateral alsosecures the purchase-money obligation; or
(3) the purchase-money obligation has been renewed,refinanced, consolidated, or restructured.
(g) Burden of proof in non-consumer-goods transaction.In a transaction other than a consumer-goods transaction, a secured partyclaiming a purchase-money security interest has the burden of establishing theextent to which the security interest is a purchase-money security interest.
(h) Non-consumer-goods transactions; no inference. Thelimitation of the rules in subsections (e), (f), and (g) to transactions otherthan consumer-goods transactions is intended to leave to the court thedetermination of the proper rules in consumer-goods transactions. The court maynot infer from that limitation the nature of the proper rule in consumer-goodstransactions and may continue to apply established approaches.
§ 6A-9-103 Purchase-money securityinterest; application of payments; burden of establishing. – (a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software thatsecures a purchase-money obligation incurred with respect to that collateral;and
(2) "purchase-money obligation" means an obligation of anobligor incurred as all or part of the price of the collateral or for valuegiven to enable the debtor to acquire rights in or the use of the collateral ifthe value is in fact so used.
(b) Purchase-money security interest in goods. Asecurity interest in goods is a purchase-money security interest:
(1) to the extent that the goods are purchase-moneycollateral with respect to that security interest;
(2) if the security interest is in inventory that is or waspurchase-money collateral, also to the extent that the security interestsecures a purchase-money obligation incurred with respect to other inventory inwhich the secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures apurchase-money obligation incurred with respect to software in which thesecured party holds or held a purchase-money security interest.
(c) Purchase-money security interest in software. Asecurity interest in software is a purchase-money security interest to theextent that the security interest also secures a purchase-money obligationincurred with respect to goods in which the secured party holds or held apurchase-money security interest if:
(1) the debtor acquired its interest in the software in anintegrated transaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for theprincipal purpose of using the software in the goods.
(d) Consignor's inventory purchase-money securityinterest. The security interest of a consignor in goods that are thesubject of a consignment is a purchase-money security interest in inventory.
(e) Application of payment in non-consumer-goodstransaction. In a transaction other than a consumer-goods transaction, ifthe extent to which a security interest is a purchase-money security interestdepends on the application of a payment to a particular obligation, the paymentmust be applied:
(1) in accordance with any reasonable method of applicationto which the parties agree;
(2) in the absence of the parties' agreement to a reasonablemethod, in accordance with any intention of the obligor manifested at or beforethe time of payment; or
(3) in the absence of an agreement to a reasonable method anda timely manifestation of the obligor's intention, in the following order:
(i) to obligations that are not secured; and
(ii) if more than one obligation is secured, to obligationssecured by purchase-money security interests in the order in which thoseobligations were incurred.
(f) No loss of status of purchase-money security interestin non-consumer-goods transaction. In a transaction other than aconsumer-goods transaction, a purchase-money security interest does not loseits status as such, even if:
(1) the purchase-money collateral also secures an obligationthat is not a purchase-money obligation;
(2) collateral that is not purchase-money collateral alsosecures the purchase-money obligation; or
(3) the purchase-money obligation has been renewed,refinanced, consolidated, or restructured.
(g) Burden of proof in non-consumer-goods transaction.In a transaction other than a consumer-goods transaction, a secured partyclaiming a purchase-money security interest has the burden of establishing theextent to which the security interest is a purchase-money security interest.
(h) Non-consumer-goods transactions; no inference. Thelimitation of the rules in subsections (e), (f), and (g) to transactions otherthan consumer-goods transactions is intended to leave to the court thedetermination of the proper rules in consumer-goods transactions. The court maynot infer from that limitation the nature of the proper rule in consumer-goodstransactions and may continue to apply established approaches.
§ 6A-9-103 Purchase-money securityinterest; application of payments; burden of establishing. – (a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software thatsecures a purchase-money obligation incurred with respect to that collateral;and
(2) "purchase-money obligation" means an obligation of anobligor incurred as all or part of the price of the collateral or for valuegiven to enable the debtor to acquire rights in or the use of the collateral ifthe value is in fact so used.
(b) Purchase-money security interest in goods. Asecurity interest in goods is a purchase-money security interest:
(1) to the extent that the goods are purchase-moneycollateral with respect to that security interest;
(2) if the security interest is in inventory that is or waspurchase-money collateral, also to the extent that the security interestsecures a purchase-money obligation incurred with respect to other inventory inwhich the secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures apurchase-money obligation incurred with respect to software in which thesecured party holds or held a purchase-money security interest.
(c) Purchase-money security interest in software. Asecurity interest in software is a purchase-money security interest to theextent that the security interest also secures a purchase-money obligationincurred with respect to goods in which the secured party holds or held apurchase-money security interest if:
(1) the debtor acquired its interest in the software in anintegrated transaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for theprincipal purpose of using the software in the goods.
(d) Consignor's inventory purchase-money securityinterest. The security interest of a consignor in goods that are thesubject of a consignment is a purchase-money security interest in inventory.
(e) Application of payment in non-consumer-goodstransaction. In a transaction other than a consumer-goods transaction, ifthe extent to which a security interest is a purchase-money security interestdepends on the application of a payment to a particular obligation, the paymentmust be applied:
(1) in accordance with any reasonable method of applicationto which the parties agree;
(2) in the absence of the parties' agreement to a reasonablemethod, in accordance with any intention of the obligor manifested at or beforethe time of payment; or
(3) in the absence of an agreement to a reasonable method anda timely manifestation of the obligor's intention, in the following order:
(i) to obligations that are not secured; and
(ii) if more than one obligation is secured, to obligationssecured by purchase-money security interests in the order in which thoseobligations were incurred.
(f) No loss of status of purchase-money security interestin non-consumer-goods transaction. In a transaction other than aconsumer-goods transaction, a purchase-money security interest does not loseits status as such, even if:
(1) the purchase-money collateral also secures an obligationthat is not a purchase-money obligation;
(2) collateral that is not purchase-money collateral alsosecures the purchase-money obligation; or
(3) the purchase-money obligation has been renewed,refinanced, consolidated, or restructured.
(g) Burden of proof in non-consumer-goods transaction.In a transaction other than a consumer-goods transaction, a secured partyclaiming a purchase-money security interest has the burden of establishing theextent to which the security interest is a purchase-money security interest.
(h) Non-consumer-goods transactions; no inference. Thelimitation of the rules in subsections (e), (f), and (g) to transactions otherthan consumer-goods transactions is intended to leave to the court thedetermination of the proper rules in consumer-goods transactions. The court maynot infer from that limitation the nature of the proper rule in consumer-goodstransactions and may continue to apply established approaches.
