§ 9-336. 9-336
251 words·~1 min read·
/us/ucc/a9/s9-336A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)["Commingled goods."] In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.
(b)[No security interest in commingled goods as such.] A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.
(c)[Attachment of security interest to product or mass.] If collateral becomes commingled goods , a security interest attaches to the product or mass.
(d)[Perfection of security interest.] If a security interest in collateral is perfected before the collateral becomes commingled goods , the security interest that attaches to the product or mass under subsection
(c)is perfected.
(e)[Priority of security interest.] Except as otherwise provided in subsection (f), the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection (c).
(f)[Conflicting security interests in product or mass] If more than one security interest attaches to the product or mass under subsection (c), the following rules determine priority:
(1)A security interest that is perfected under subsection
(d)has priority over a security interest that is unperfected at the time the collateral becomes commingled goods .
(2)If more than one security interest is perfected under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.