§ 8.9A-103. Purchase-money security interest; application of payments; burdenof establishing.
(a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software that secures apurchase-money obligation incurred with respect to that collateral; and
(2) "purchase-money obligation" means an obligation of an obligor incurredas all or part of the price of the collateral or for value given to enablethe debtor to acquire rights in or the use of the collateral if the value isin fact so used.
(b) Purchase-money security interest in goods. A security interest in goodsis a purchase-money security interest:
(1) to the extent that the goods are purchase-money collateral with respectto that security interest;
(2) if the security interest is in inventory that is or was purchase-moneycollateral, also to the extent that the security interest secures apurchase-money obligation incurred with respect to other inventory in whichthe secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures a purchase-moneyobligation incurred with respect to software in which the secured party holdsor held a purchase-money security interest.
(c) Purchase-money security interest in software. A security interest insoftware is a purchase-money security interest to the extent that thesecurity interest also secures a purchase-money obligation incurred withrespect to goods in which the secured party holds or held a purchase-moneysecurity interest if:
(1) the debtor acquired its interest in the software in an integratedtransaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for the principalpurpose of using the software in the goods.
(d) Consignor's inventory purchase-money security interest. The securityinterest of a consignor in goods that are the subject of a consignment is apurchase-money security interest in inventory.
(e) Application of payment in nonconsumer-goods transaction. In a transactionother than a consumer-goods transaction, if the extent to which a securityinterest is a purchase-money security interest depends on the application ofa payment to a particular obligation, the payment must be applied:
(1) in accordance with any reasonable method of application to which theparties agree;
(2) in the absence of the parties' agreement to a reasonable method, inaccordance with any intention of the obligor manifested at or before the timeof payment; or
(3) in the absence of an agreement to a reasonable method and a timelymanifestation of the obligor's intention, in the following order:
(A) to obligations that are not secured; and
(B) if more than one obligation is secured, to obligations secured bypurchase-money security interests in the order in which those obligationswere incurred.
(f) No loss of status of purchase-money security interest innonconsumer-goods transaction. In a transaction other than a consumer-goodstransaction, a purchase-money security interest does not lose its status assuch, even if:
(1) the purchase-money collateral also secures an obligation that is not apurchase-money obligation;
(2) collateral that is not purchase-money collateral also secures thepurchase-money obligation; or
(3) the purchase-money obligation has been renewed, refinanced, consolidated,or restructured.
(g) Burden of proof in nonconsumer-goods transaction. In a transaction otherthan a consumer-goods transaction, a secured party claiming a purchase-moneysecurity interest has the burden of establishing the extent to which thesecurity interest is a purchase-money security interest.
(h) Nonconsumer-goods transactions; no inference. The limitation of the rulesin subsections (e), (f), and (g) to transactions other than consumer-goodstransactions is intended to leave to the court the determination of theproper rules in consumer-goods transactions. The court may not infer fromthat limitation the nature of the proper rule in consumer-goods transactionsand may continue to apply established approaches.
(i) Goods covered by negotiable document. The attachment of a securityinterest in a negotiable document is also attachment of a security interestin the goods covered by the negotiable document.
§ 8.9A-103. Purchase-money security interest; application of payments; burdenof establishing.
(a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software that secures apurchase-money obligation incurred with respect to that collateral; and
(2) "purchase-money obligation" means an obligation of an obligor incurredas all or part of the price of the collateral or for value given to enablethe debtor to acquire rights in or the use of the collateral if the value isin fact so used.
(b) Purchase-money security interest in goods. A security interest in goodsis a purchase-money security interest:
(1) to the extent that the goods are purchase-money collateral with respectto that security interest;
(2) if the security interest is in inventory that is or was purchase-moneycollateral, also to the extent that the security interest secures apurchase-money obligation incurred with respect to other inventory in whichthe secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures a purchase-moneyobligation incurred with respect to software in which the secured party holdsor held a purchase-money security interest.
(c) Purchase-money security interest in software. A security interest insoftware is a purchase-money security interest to the extent that thesecurity interest also secures a purchase-money obligation incurred withrespect to goods in which the secured party holds or held a purchase-moneysecurity interest if:
(1) the debtor acquired its interest in the software in an integratedtransaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for the principalpurpose of using the software in the goods.
(d) Consignor's inventory purchase-money security interest. The securityinterest of a consignor in goods that are the subject of a consignment is apurchase-money security interest in inventory.
(e) Application of payment in nonconsumer-goods transaction. In a transactionother than a consumer-goods transaction, if the extent to which a securityinterest is a purchase-money security interest depends on the application ofa payment to a particular obligation, the payment must be applied:
(1) in accordance with any reasonable method of application to which theparties agree;
(2) in the absence of the parties' agreement to a reasonable method, inaccordance with any intention of the obligor manifested at or before the timeof payment; or
(3) in the absence of an agreement to a reasonable method and a timelymanifestation of the obligor's intention, in the following order:
(A) to obligations that are not secured; and
(B) if more than one obligation is secured, to obligations secured bypurchase-money security interests in the order in which those obligationswere incurred.
(f) No loss of status of purchase-money security interest innonconsumer-goods transaction. In a transaction other than a consumer-goodstransaction, a purchase-money security interest does not lose its status assuch, even if:
(1) the purchase-money collateral also secures an obligation that is not apurchase-money obligation;
(2) collateral that is not purchase-money collateral also secures thepurchase-money obligation; or
(3) the purchase-money obligation has been renewed, refinanced, consolidated,or restructured.
(g) Burden of proof in nonconsumer-goods transaction. In a transaction otherthan a consumer-goods transaction, a secured party claiming a purchase-moneysecurity interest has the burden of establishing the extent to which thesecurity interest is a purchase-money security interest.
(h) Nonconsumer-goods transactions; no inference. The limitation of the rulesin subsections (e), (f), and (g) to transactions other than consumer-goodstransactions is intended to leave to the court the determination of theproper rules in consumer-goods transactions. The court may not infer fromthat limitation the nature of the proper rule in consumer-goods transactionsand may continue to apply established approaches.
(i) Goods covered by negotiable document. The attachment of a securityinterest in a negotiable document is also attachment of a security interestin the goods covered by the negotiable document.
§ 8.9A-103. Purchase-money security interest; application of payments; burdenof establishing.
(a) Definitions. In this section:
(1) "purchase-money collateral" means goods or software that secures apurchase-money obligation incurred with respect to that collateral; and
(2) "purchase-money obligation" means an obligation of an obligor incurredas all or part of the price of the collateral or for value given to enablethe debtor to acquire rights in or the use of the collateral if the value isin fact so used.
(b) Purchase-money security interest in goods. A security interest in goodsis a purchase-money security interest:
(1) to the extent that the goods are purchase-money collateral with respectto that security interest;
(2) if the security interest is in inventory that is or was purchase-moneycollateral, also to the extent that the security interest secures apurchase-money obligation incurred with respect to other inventory in whichthe secured party holds or held a purchase-money security interest; and
(3) also to the extent that the security interest secures a purchase-moneyobligation incurred with respect to software in which the secured party holdsor held a purchase-money security interest.
(c) Purchase-money security interest in software. A security interest insoftware is a purchase-money security interest to the extent that thesecurity interest also secures a purchase-money obligation incurred withrespect to goods in which the secured party holds or held a purchase-moneysecurity interest if:
(1) the debtor acquired its interest in the software in an integratedtransaction in which it acquired an interest in the goods; and
(2) the debtor acquired its interest in the software for the principalpurpose of using the software in the goods.
(d) Consignor's inventory purchase-money security interest. The securityinterest of a consignor in goods that are the subject of a consignment is apurchase-money security interest in inventory.
(e) Application of payment in nonconsumer-goods transaction. In a transactionother than a consumer-goods transaction, if the extent to which a securityinterest is a purchase-money security interest depends on the application ofa payment to a particular obligation, the payment must be applied:
(1) in accordance with any reasonable method of application to which theparties agree;
(2) in the absence of the parties' agreement to a reasonable method, inaccordance with any intention of the obligor manifested at or before the timeof payment; or
(3) in the absence of an agreement to a reasonable method and a timelymanifestation of the obligor's intention, in the following order:
(A) to obligations that are not secured; and
(B) if more than one obligation is secured, to obligations secured bypurchase-money security interests in the order in which those obligationswere incurred.
(f) No loss of status of purchase-money security interest innonconsumer-goods transaction. In a transaction other than a consumer-goodstransaction, a purchase-money security interest does not lose its status assuch, even if:
(1) the purchase-money collateral also secures an obligation that is not apurchase-money obligation;
(2) collateral that is not purchase-money collateral also secures thepurchase-money obligation; or
(3) the purchase-money obligation has been renewed, refinanced, consolidated,or restructured.
(g) Burden of proof in nonconsumer-goods transaction. In a transaction otherthan a consumer-goods transaction, a secured party claiming a purchase-moneysecurity interest has the burden of establishing the extent to which thesecurity interest is a purchase-money security interest.
(h) Nonconsumer-goods transactions; no inference. The limitation of the rulesin subsections (e), (f), and (g) to transactions other than consumer-goodstransactions is intended to leave to the court the determination of theproper rules in consumer-goods transactions. The court may not infer fromthat limitation the nature of the proper rule in consumer-goods transactionsand may continue to apply established approaches.
(i) Goods covered by negotiable document. The attachment of a securityinterest in a negotiable document is also attachment of a security interestin the goods covered by the negotiable document.
