§ 6A-9-324 Priority of purchase-moneysecurity interests. – (a) General rule: purchase-money priority. Except as otherwise providedin subsection (g), a perfected purchase-money security interest in goods otherthan inventory or livestock has priority over a conflicting security interestin the same goods, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, ifthe purchase-money security interest is perfected when the debtor receivespossession of the collateral or within 20 days thereafter.
(b) Inventory purchase-money priority. Subject tosubsection (c) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in inventory has priority over a conflictingsecurity interest in the same inventory, has priority over a conflictingsecurity interest in chattel paper or an instrument constituting proceeds ofthe inventory and in proceeds of the chattel paper, if so provided in §6A-9-330, and, except as otherwise provided in § 6A-9-327, also haspriority in identifiable cash proceeds of the inventory to the extent theidentifiable cash proceeds are received on or before the delivery of theinventory to a buyer, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the inventory;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within five years before the debtor receives possession of theinventory; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest ininventory of the debtor and describes the inventory.
(c) Holders of conflicting inventory security interests tobe notified. Subsections (b)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of inventory:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(d) Livestock purchase-money priority. Subject tosubsection (e) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in livestock that are farm products haspriority over a conflicting security interest in the same livestock, and,except as otherwise provided in § 6A-9-327, a perfected security interestin their identifiable proceeds and identifiable products in theirunmanufactured states also has priority, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the livestock;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within six months before the debtor receives possession of thelivestock; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest inlivestock of the debtor and describes the livestock.
(e) Holders of conflicting livestock security interests tobe notified. Subsections (d)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of livestock:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(f) Software purchase-money priority. Except asotherwise provided in subsection (g), a perfected purchase-money securityinterest in software has priority over a conflicting security interest in thesame collateral, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, tothe extent that the purchase-money security interest in the goods in which thesoftware was acquired for use has priority in the goods and proceeds of thegoods under this section.
(g) Conflicting purchase-money security interests. Ifmore than one security interest qualifies for priority in the same collateralunder subsection (a), (b), (d), or (f):
(1) A security interest securing an obligation incurred asall or part of the price of the collateral has priority over a securityinterest securing an obligation incurred for value given to enable the debtorto acquire rights in or the use of collateral; and
(2) In all other cases, § 6A-9-322(a) applies to thequalifying security interests.
§ 6A-9-324 Priority of purchase-moneysecurity interests. – (a) General rule: purchase-money priority. Except as otherwise providedin subsection (g), a perfected purchase-money security interest in goods otherthan inventory or livestock has priority over a conflicting security interestin the same goods, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, ifthe purchase-money security interest is perfected when the debtor receivespossession of the collateral or within 20 days thereafter.
(b) Inventory purchase-money priority. Subject tosubsection (c) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in inventory has priority over a conflictingsecurity interest in the same inventory, has priority over a conflictingsecurity interest in chattel paper or an instrument constituting proceeds ofthe inventory and in proceeds of the chattel paper, if so provided in §6A-9-330, and, except as otherwise provided in § 6A-9-327, also haspriority in identifiable cash proceeds of the inventory to the extent theidentifiable cash proceeds are received on or before the delivery of theinventory to a buyer, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the inventory;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within five years before the debtor receives possession of theinventory; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest ininventory of the debtor and describes the inventory.
(c) Holders of conflicting inventory security interests tobe notified. Subsections (b)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of inventory:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(d) Livestock purchase-money priority. Subject tosubsection (e) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in livestock that are farm products haspriority over a conflicting security interest in the same livestock, and,except as otherwise provided in § 6A-9-327, a perfected security interestin their identifiable proceeds and identifiable products in theirunmanufactured states also has priority, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the livestock;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within six months before the debtor receives possession of thelivestock; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest inlivestock of the debtor and describes the livestock.
(e) Holders of conflicting livestock security interests tobe notified. Subsections (d)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of livestock:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(f) Software purchase-money priority. Except asotherwise provided in subsection (g), a perfected purchase-money securityinterest in software has priority over a conflicting security interest in thesame collateral, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, tothe extent that the purchase-money security interest in the goods in which thesoftware was acquired for use has priority in the goods and proceeds of thegoods under this section.
(g) Conflicting purchase-money security interests. Ifmore than one security interest qualifies for priority in the same collateralunder subsection (a), (b), (d), or (f):
(1) A security interest securing an obligation incurred asall or part of the price of the collateral has priority over a securityinterest securing an obligation incurred for value given to enable the debtorto acquire rights in or the use of collateral; and
(2) In all other cases, § 6A-9-322(a) applies to thequalifying security interests.
§ 6A-9-324 Priority of purchase-moneysecurity interests. – (a) General rule: purchase-money priority. Except as otherwise providedin subsection (g), a perfected purchase-money security interest in goods otherthan inventory or livestock has priority over a conflicting security interestin the same goods, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, ifthe purchase-money security interest is perfected when the debtor receivespossession of the collateral or within 20 days thereafter.
(b) Inventory purchase-money priority. Subject tosubsection (c) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in inventory has priority over a conflictingsecurity interest in the same inventory, has priority over a conflictingsecurity interest in chattel paper or an instrument constituting proceeds ofthe inventory and in proceeds of the chattel paper, if so provided in §6A-9-330, and, except as otherwise provided in § 6A-9-327, also haspriority in identifiable cash proceeds of the inventory to the extent theidentifiable cash proceeds are received on or before the delivery of theinventory to a buyer, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the inventory;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within five years before the debtor receives possession of theinventory; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest ininventory of the debtor and describes the inventory.
(c) Holders of conflicting inventory security interests tobe notified. Subsections (b)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of inventory:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(d) Livestock purchase-money priority. Subject tosubsection (e) and except as otherwise provided in subsection (g), a perfectedpurchase-money security interest in livestock that are farm products haspriority over a conflicting security interest in the same livestock, and,except as otherwise provided in § 6A-9-327, a perfected security interestin their identifiable proceeds and identifiable products in theirunmanufactured states also has priority, if:
(1) The purchase-money security interest is perfected whenthe debtor receives possession of the livestock;
(2) The purchase-money secured party sends an authenticatednotification to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receivesthe notification within six months before the debtor receives possession of thelivestock; and
(4) The notification states that the person sending thenotification has or expects to acquire a purchase-money security interest inlivestock of the debtor and describes the livestock.
(e) Holders of conflicting livestock security interests tobe notified. Subsections (d)(2) through (4) apply only if the holder of theconflicting security interest had filed a financing statement covering the sametypes of livestock:
(1) If the purchase-money security interest is perfected byfiling, before the date of the filing; or
(2) If the purchase-money security interest is temporarilyperfected without filing or possession under § 6A-9-312(f), before thebeginning of the 20-day period thereunder.
(f) Software purchase-money priority. Except asotherwise provided in subsection (g), a perfected purchase-money securityinterest in software has priority over a conflicting security interest in thesame collateral, and, except as otherwise provided in § 6A-9-327, aperfected security interest in its identifiable proceeds also has priority, tothe extent that the purchase-money security interest in the goods in which thesoftware was acquired for use has priority in the goods and proceeds of thegoods under this section.
(g) Conflicting purchase-money security interests. Ifmore than one security interest qualifies for priority in the same collateralunder subsection (a), (b), (d), or (f):
(1) A security interest securing an obligation incurred asall or part of the price of the collateral has priority over a securityinterest securing an obligation incurred for value given to enable the debtorto acquire rights in or the use of collateral; and
(2) In all other cases, § 6A-9-322(a) applies to thequalifying security interests.
