§ 6A-9-334 Priority of security interestsin fixtures and crops. – (a) Security interest in fixtures under this chapter. A securityinterest under this chapter may be created in goods that are fixtures or maycontinue in goods that become fixtures. A security interest does not existunder this chapter in ordinary building materials incorporated into animprovement on land.
(b) Security interest in fixtures under real-propertylaw. This chapter does not prevent creation of an encumbrance upon fixturesunder real property law.
(c) General rule: subordination of security interest infixtures. In cases not governed by subsections (d) through (h), a securityinterest in fixtures is subordinate to a conflicting interest of anencumbrancer or owner of the related real property other than the debtor.
(d) Fixtures purchase-money priority. Except asotherwise provided in subsection (h), a perfected security interest in fixtureshas priority over a conflicting interest of an encumbrancer or owner of thereal property if the debtor has an interest of record in or is in possession ofthe real property and:
(1) The security interest is a purchase-money securityinterest;
(2) The interest of the encumbrancer or owner arises beforethe goods become fixtures; and
(3) The security interest is perfected by a fixture filingbefore the goods become fixtures or within 20 days thereafter.
(e) Priority of security interest in fixtures overinterests in real property. A perfected security interest in fixtures haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The debtor has an interest of record in the real propertyor is in possession of the real property and the security interest:
(i) Is perfected by a fixture filing before the interest ofthe encumbrancer or owner is of record; and
(ii) Has priority over any conflicting interest of apredecessor in title of the encumbrancer or owner;
(2) Before the goods become fixtures, the security interestis perfected by any method permitted by this chapter and the fixtures arereadily removable:
(i) Factory or office machines;
(ii) Equipment that is not primarily used or leased for usein the operation of the real property; or
(iii) Replacements of domestic appliances that are consumergoods;
(3) The conflicting interest is a lien on the real propertyobtained by legal or equitable proceedings after the security interest wasperfected by any method permitted by this chapter; or
(4) The security interest is:
(i) Created in a manufactured home in a manufactured-hometransaction; and
(ii) Perfected pursuant to a statute described in §6A-9-311(a)(2).
(f) Priority based on consent, disclaimer, or right toremove. A security interest in fixtures, whether or not perfected, haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The encumbrancer or owner has, in an authenticatedrecord, consented to the security interest or disclaimed an interest in thegoods as fixtures; or
(2) The debtor has a right to remove the goods as against theencumbrancer or owner.
(g) Continuation of paragraph (f)(2) priority. Thepriority of the security interest under paragraph (f)(2) continues for areasonable time if the debtor's right to remove the goods as against theencumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is aconstruction mortgage to the extent that it secures an obligation incurred forthe construction of an improvement on land, including the acquisition cost ofthe land, if a recorded record of the mortgage so indicates. Except asotherwise provided in subsections (e) and (f), a security interest in fixturesis subordinate to a construction mortgage if a record of the mortgage isrecorded before the goods become fixtures and the goods become fixtures beforethe completion of the construction. A mortgage has this priority to the sameextent as a construction mortgage to the extent that it is given to refinance aconstruction mortgage.
(i) Priority of security interest in crops. Aperfected security interest in crops growing on real property has priority overa conflicting interest of an encumbrancer or owner of the real property if thedebtor has an interest of record in or is in possession of the real property.
§ 6A-9-334 Priority of security interestsin fixtures and crops. – (a) Security interest in fixtures under this chapter. A securityinterest under this chapter may be created in goods that are fixtures or maycontinue in goods that become fixtures. A security interest does not existunder this chapter in ordinary building materials incorporated into animprovement on land.
(b) Security interest in fixtures under real-propertylaw. This chapter does not prevent creation of an encumbrance upon fixturesunder real property law.
(c) General rule: subordination of security interest infixtures. In cases not governed by subsections (d) through (h), a securityinterest in fixtures is subordinate to a conflicting interest of anencumbrancer or owner of the related real property other than the debtor.
(d) Fixtures purchase-money priority. Except asotherwise provided in subsection (h), a perfected security interest in fixtureshas priority over a conflicting interest of an encumbrancer or owner of thereal property if the debtor has an interest of record in or is in possession ofthe real property and:
(1) The security interest is a purchase-money securityinterest;
(2) The interest of the encumbrancer or owner arises beforethe goods become fixtures; and
(3) The security interest is perfected by a fixture filingbefore the goods become fixtures or within 20 days thereafter.
(e) Priority of security interest in fixtures overinterests in real property. A perfected security interest in fixtures haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The debtor has an interest of record in the real propertyor is in possession of the real property and the security interest:
(i) Is perfected by a fixture filing before the interest ofthe encumbrancer or owner is of record; and
(ii) Has priority over any conflicting interest of apredecessor in title of the encumbrancer or owner;
(2) Before the goods become fixtures, the security interestis perfected by any method permitted by this chapter and the fixtures arereadily removable:
(i) Factory or office machines;
(ii) Equipment that is not primarily used or leased for usein the operation of the real property; or
(iii) Replacements of domestic appliances that are consumergoods;
(3) The conflicting interest is a lien on the real propertyobtained by legal or equitable proceedings after the security interest wasperfected by any method permitted by this chapter; or
(4) The security interest is:
(i) Created in a manufactured home in a manufactured-hometransaction; and
(ii) Perfected pursuant to a statute described in §6A-9-311(a)(2).
(f) Priority based on consent, disclaimer, or right toremove. A security interest in fixtures, whether or not perfected, haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The encumbrancer or owner has, in an authenticatedrecord, consented to the security interest or disclaimed an interest in thegoods as fixtures; or
(2) The debtor has a right to remove the goods as against theencumbrancer or owner.
(g) Continuation of paragraph (f)(2) priority. Thepriority of the security interest under paragraph (f)(2) continues for areasonable time if the debtor's right to remove the goods as against theencumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is aconstruction mortgage to the extent that it secures an obligation incurred forthe construction of an improvement on land, including the acquisition cost ofthe land, if a recorded record of the mortgage so indicates. Except asotherwise provided in subsections (e) and (f), a security interest in fixturesis subordinate to a construction mortgage if a record of the mortgage isrecorded before the goods become fixtures and the goods become fixtures beforethe completion of the construction. A mortgage has this priority to the sameextent as a construction mortgage to the extent that it is given to refinance aconstruction mortgage.
(i) Priority of security interest in crops. Aperfected security interest in crops growing on real property has priority overa conflicting interest of an encumbrancer or owner of the real property if thedebtor has an interest of record in or is in possession of the real property.
§ 6A-9-334 Priority of security interestsin fixtures and crops. – (a) Security interest in fixtures under this chapter. A securityinterest under this chapter may be created in goods that are fixtures or maycontinue in goods that become fixtures. A security interest does not existunder this chapter in ordinary building materials incorporated into animprovement on land.
(b) Security interest in fixtures under real-propertylaw. This chapter does not prevent creation of an encumbrance upon fixturesunder real property law.
(c) General rule: subordination of security interest infixtures. In cases not governed by subsections (d) through (h), a securityinterest in fixtures is subordinate to a conflicting interest of anencumbrancer or owner of the related real property other than the debtor.
(d) Fixtures purchase-money priority. Except asotherwise provided in subsection (h), a perfected security interest in fixtureshas priority over a conflicting interest of an encumbrancer or owner of thereal property if the debtor has an interest of record in or is in possession ofthe real property and:
(1) The security interest is a purchase-money securityinterest;
(2) The interest of the encumbrancer or owner arises beforethe goods become fixtures; and
(3) The security interest is perfected by a fixture filingbefore the goods become fixtures or within 20 days thereafter.
(e) Priority of security interest in fixtures overinterests in real property. A perfected security interest in fixtures haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The debtor has an interest of record in the real propertyor is in possession of the real property and the security interest:
(i) Is perfected by a fixture filing before the interest ofthe encumbrancer or owner is of record; and
(ii) Has priority over any conflicting interest of apredecessor in title of the encumbrancer or owner;
(2) Before the goods become fixtures, the security interestis perfected by any method permitted by this chapter and the fixtures arereadily removable:
(i) Factory or office machines;
(ii) Equipment that is not primarily used or leased for usein the operation of the real property; or
(iii) Replacements of domestic appliances that are consumergoods;
(3) The conflicting interest is a lien on the real propertyobtained by legal or equitable proceedings after the security interest wasperfected by any method permitted by this chapter; or
(4) The security interest is:
(i) Created in a manufactured home in a manufactured-hometransaction; and
(ii) Perfected pursuant to a statute described in §6A-9-311(a)(2).
(f) Priority based on consent, disclaimer, or right toremove. A security interest in fixtures, whether or not perfected, haspriority over a conflicting interest of an encumbrancer or owner of the realproperty if:
(1) The encumbrancer or owner has, in an authenticatedrecord, consented to the security interest or disclaimed an interest in thegoods as fixtures; or
(2) The debtor has a right to remove the goods as against theencumbrancer or owner.
(g) Continuation of paragraph (f)(2) priority. Thepriority of the security interest under paragraph (f)(2) continues for areasonable time if the debtor's right to remove the goods as against theencumbrancer or owner terminates.
(h) Priority of construction mortgage. A mortgage is aconstruction mortgage to the extent that it secures an obligation incurred forthe construction of an improvement on land, including the acquisition cost ofthe land, if a recorded record of the mortgage so indicates. Except asotherwise provided in subsections (e) and (f), a security interest in fixturesis subordinate to a construction mortgage if a record of the mortgage isrecorded before the goods become fixtures and the goods become fixtures beforethe completion of the construction. A mortgage has this priority to the sameextent as a construction mortgage to the extent that it is given to refinance aconstruction mortgage.
(i) Priority of security interest in crops. Aperfected security interest in crops growing on real property has priority overa conflicting interest of an encumbrancer or owner of the real property if thedebtor has an interest of record in or is in possession of the real property.
