§ 9-324. 9-324
732 words·~3 min read·
/us/ucc/a9/s9-324A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)[General rule: purchase-money priority.] Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in Section 9-327 , a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within 20 days thereafter.
(b)[Inventory purchase-money priority.] Subject to subsection
(c)and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in Section 9-330 , and, except as otherwise provided in Section 9-327 , also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:
(1)the purchase-money security interest is perfected when the debtor receives possession of the inventory;
(2)the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
(3)the holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and
(4)the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor 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 conflicting security interest had filed a financing statement covering the same types of inventory :
(1)if the purchase-money security interest is perfected by filing, before the date of the filing; or
(2)if the purchase-money security interest is temporarily perfected without filing or possession under Section 9-312(f) , before the beginning of the 20-day period thereunder.
(d)[Livestock purchase-money priority.] Subject to subsection
(e)and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in Section 9-327 , a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:
(1)the purchase-money security interest is perfected when the debtor receives possession of the livestock;
(2)the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
(3)the holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and
(4)the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor 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 conflicting security interest had filed a financing statement covering the same types of livestock:
(1)if the purchase-money security interest is perfected by filing, before the date of the filing; or
(2)if the purchase-money security interest is temporarily perfected without filing or possession under Section 9-312(f) , before the beginning of the 20-day period thereunder.
(f)[Software purchase-money priority.] Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in Section 9-327 , a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.
(g)[Conflicting purchase-money security interests.] If more than one security interest 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 the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and
(2)in all other cases, Section 9-322(a) applies to the qualifying security interests.