(a) "Commingled goods." In this section, "commingled goods" means goodsthat are physically united with other goods in such a manner that theiridentity is lost in a product or mass.
(b) No security interest in commingled goods as such. A security interestdoes not exist in commingled goods as such. However, a security interest mayattach to a product or mass that results when goods become commingled goods.
(c) Attachment of security interest to product or mass. If collateral becomescommingled goods, a security interest attaches to the product or mass.
(d) Perfection of security interest. If a security interest in collateral isperfected before the collateral becomes commingled goods, the securityinterest that attaches to the product or mass under subsection (c) isperfected.
(e) Priority of security interest. Except as otherwise provided in subsection(f), the other provisions of this part determine the priority of a securityinterest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass. If more than onesecurity interest attaches to the product or mass under subsection (c), thefollowing rules determine priority:
(1) a security interest that is perfected under subsection (d) has priorityover a security interest that is unperfected at the time the collateralbecomes commingled goods.
(2) if more than one security interest is perfected under subsection (d), thesecurity interests rank equally in proportion to the value of the collateralat the time it became commingled goods.
(a) "Commingled goods." In this section, "commingled goods" means goodsthat are physically united with other goods in such a manner that theiridentity is lost in a product or mass.
(b) No security interest in commingled goods as such. A security interestdoes not exist in commingled goods as such. However, a security interest mayattach to a product or mass that results when goods become commingled goods.
(c) Attachment of security interest to product or mass. If collateral becomescommingled goods, a security interest attaches to the product or mass.
(d) Perfection of security interest. If a security interest in collateral isperfected before the collateral becomes commingled goods, the securityinterest that attaches to the product or mass under subsection (c) isperfected.
(e) Priority of security interest. Except as otherwise provided in subsection(f), the other provisions of this part determine the priority of a securityinterest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass. If more than onesecurity interest attaches to the product or mass under subsection (c), thefollowing rules determine priority:
(1) a security interest that is perfected under subsection (d) has priorityover a security interest that is unperfected at the time the collateralbecomes commingled goods.
(2) if more than one security interest is perfected under subsection (d), thesecurity interests rank equally in proportion to the value of the collateralat the time it became commingled goods.
(a) "Commingled goods." In this section, "commingled goods" means goodsthat are physically united with other goods in such a manner that theiridentity is lost in a product or mass.
(b) No security interest in commingled goods as such. A security interestdoes not exist in commingled goods as such. However, a security interest mayattach to a product or mass that results when goods become commingled goods.
(c) Attachment of security interest to product or mass. If collateral becomescommingled goods, a security interest attaches to the product or mass.
(d) Perfection of security interest. If a security interest in collateral isperfected before the collateral becomes commingled goods, the securityinterest that attaches to the product or mass under subsection (c) isperfected.
(e) Priority of security interest. Except as otherwise provided in subsection(f), the other provisions of this part determine the priority of a securityinterest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass. If more than onesecurity interest attaches to the product or mass under subsection (c), thefollowing rules determine priority:
(1) a security interest that is perfected under subsection (d) has priorityover a security interest that is unperfected at the time the collateralbecomes commingled goods.
(2) if more than one security interest is perfected under subsection (d), thesecurity interests rank equally in proportion to the value of the collateralat the time it became commingled goods.
