§ 8.9A-324. Priority of purchase-money security interests.
(a) General rule; purchase-money priority. Except as otherwise provided insubsection (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 § 8.9A-327, aperfected security interest in its identifiable proceeds also has priority,if the purchase-money security interest is perfected when the debtor receivespossession of the collateral or within twenty days thereafter.
(b) Inventory purchase-money priority. Subject to subsection (c) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in inventory has priority over a conflicting security interest inthe same inventory, has priority over a conflicting security interest inchattel paper or an instrument constituting proceeds of the inventory and inproceeds of the chattel paper, if so provided in § 8.9A-330, and, except asotherwise provided in § 8.9A-327, also has priority in identifiable cashproceeds of the inventory to the extent the identifiable cash proceeds arereceived on or before the delivery of the inventory to a buyer, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the inventory;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin five years before the debtor receives possession of the inventory; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in inventory of thedebtor and describes the inventory.
(c) Holders of conflicting inventory security interests to be notified.Subsections (b) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types ofinventory:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(d) Livestock purchase-money priority. Subject to subsection (e) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in livestock that are farm products has priority over a conflictingsecurity interest in the same livestock, and, except as otherwise provided in§ 8.9A-327, a perfected security interest in their identifiable proceeds andidentifiable products in their unmanufactured states also has priority, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the livestock;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin six months before the debtor receives possession of the livestock; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in livestock of thedebtor and describes the livestock.
(e) Holders of conflicting livestock security interests to be notified.Subsections (d) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types oflivestock:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(f) Software purchase-money priority. Except as otherwise provided insubsection (g), a perfected purchase-money security interest in software haspriority over a conflicting security interest in the same collateral, and,except as otherwise provided in § 8.9A-327, a perfected security interest inits identifiable proceeds also has priority, to the extent that thepurchase-money security interest in the goods in which the software wasacquired for use has priority in the goods and proceeds of the goods underthis section.
(g) Conflicting purchase-money security interests. If more than one securityinterest qualifies for priority in the same collateral under subsection (a),(b), (d), or (f):
(1) a security interest securing an obligation incurred as all or part of theprice of the collateral has priority over a security interest securing anobligation incurred for value given to enable the debtor to acquire rights inor the use of collateral; and
(2) in all other cases, § 8.9A-322 (a) applies to the qualifying securityinterests.
(Code 1950, § 43-27; 1964, c. 219, § 8.9-312; 1966, c. 557; 1973, c. 509;1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007.)
§ 8.9A-324. Priority of purchase-money security interests.
(a) General rule; purchase-money priority. Except as otherwise provided insubsection (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 § 8.9A-327, aperfected security interest in its identifiable proceeds also has priority,if the purchase-money security interest is perfected when the debtor receivespossession of the collateral or within twenty days thereafter.
(b) Inventory purchase-money priority. Subject to subsection (c) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in inventory has priority over a conflicting security interest inthe same inventory, has priority over a conflicting security interest inchattel paper or an instrument constituting proceeds of the inventory and inproceeds of the chattel paper, if so provided in § 8.9A-330, and, except asotherwise provided in § 8.9A-327, also has priority in identifiable cashproceeds of the inventory to the extent the identifiable cash proceeds arereceived on or before the delivery of the inventory to a buyer, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the inventory;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin five years before the debtor receives possession of the inventory; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in inventory of thedebtor and describes the inventory.
(c) Holders of conflicting inventory security interests to be notified.Subsections (b) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types ofinventory:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(d) Livestock purchase-money priority. Subject to subsection (e) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in livestock that are farm products has priority over a conflictingsecurity interest in the same livestock, and, except as otherwise provided in§ 8.9A-327, a perfected security interest in their identifiable proceeds andidentifiable products in their unmanufactured states also has priority, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the livestock;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin six months before the debtor receives possession of the livestock; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in livestock of thedebtor and describes the livestock.
(e) Holders of conflicting livestock security interests to be notified.Subsections (d) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types oflivestock:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(f) Software purchase-money priority. Except as otherwise provided insubsection (g), a perfected purchase-money security interest in software haspriority over a conflicting security interest in the same collateral, and,except as otherwise provided in § 8.9A-327, a perfected security interest inits identifiable proceeds also has priority, to the extent that thepurchase-money security interest in the goods in which the software wasacquired for use has priority in the goods and proceeds of the goods underthis section.
(g) Conflicting purchase-money security interests. If more than one securityinterest qualifies for priority in the same collateral under subsection (a),(b), (d), or (f):
(1) a security interest securing an obligation incurred as all or part of theprice of the collateral has priority over a security interest securing anobligation incurred for value given to enable the debtor to acquire rights inor the use of collateral; and
(2) in all other cases, § 8.9A-322 (a) applies to the qualifying securityinterests.
(Code 1950, § 43-27; 1964, c. 219, § 8.9-312; 1966, c. 557; 1973, c. 509;1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007.)
§ 8.9A-324. Priority of purchase-money security interests.
(a) General rule; purchase-money priority. Except as otherwise provided insubsection (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 § 8.9A-327, aperfected security interest in its identifiable proceeds also has priority,if the purchase-money security interest is perfected when the debtor receivespossession of the collateral or within twenty days thereafter.
(b) Inventory purchase-money priority. Subject to subsection (c) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in inventory has priority over a conflicting security interest inthe same inventory, has priority over a conflicting security interest inchattel paper or an instrument constituting proceeds of the inventory and inproceeds of the chattel paper, if so provided in § 8.9A-330, and, except asotherwise provided in § 8.9A-327, also has priority in identifiable cashproceeds of the inventory to the extent the identifiable cash proceeds arereceived on or before the delivery of the inventory to a buyer, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the inventory;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin five years before the debtor receives possession of the inventory; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in inventory of thedebtor and describes the inventory.
(c) Holders of conflicting inventory security interests to be notified.Subsections (b) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types ofinventory:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(d) Livestock purchase-money priority. Subject to subsection (e) and exceptas otherwise provided in subsection (g), a perfected purchase-money securityinterest in livestock that are farm products has priority over a conflictingsecurity interest in the same livestock, and, except as otherwise provided in§ 8.9A-327, a perfected security interest in their identifiable proceeds andidentifiable products in their unmanufactured states also has priority, if:
(1) the purchase-money security interest is perfected when the debtorreceives possession of the livestock;
(2) the purchase-money secured party sends an authenticated notification tothe holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the notificationwithin six months before the debtor receives possession of the livestock; and
(4) the notification states that the person sending the notification has orexpects to acquire a purchase-money security interest in livestock of thedebtor and describes the livestock.
(e) Holders of conflicting livestock security interests to be notified.Subsections (d) (2) through (4) apply only if the holder of the conflictingsecurity interest had filed a financing statement covering the same types oflivestock:
(1) if the purchase-money security interest is perfected by filing, beforethe date of the filing; or
(2) if the purchase-money security interest is temporarily perfected withoutfiling or possession under § 8.9A-312 (f), before the beginning of thetwenty-day period thereunder.
(f) Software purchase-money priority. Except as otherwise provided insubsection (g), a perfected purchase-money security interest in software haspriority over a conflicting security interest in the same collateral, and,except as otherwise provided in § 8.9A-327, a perfected security interest inits identifiable proceeds also has priority, to the extent that thepurchase-money security interest in the goods in which the software wasacquired for use has priority in the goods and proceeds of the goods underthis section.
(g) Conflicting purchase-money security interests. If more than one securityinterest qualifies for priority in the same collateral under subsection (a),(b), (d), or (f):
(1) a security interest securing an obligation incurred as all or part of theprice of the collateral has priority over a security interest securing anobligation incurred for value given to enable the debtor to acquire rights inor the use of collateral; and
(2) in all other cases, § 8.9A-322 (a) applies to the qualifying securityinterests.
(Code 1950, § 43-27; 1964, c. 219, § 8.9-312; 1966, c. 557; 1973, c. 509;1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007.)
