§ 4-9-335 — Accessions

(a) A security interest may be created in an accession
and continues in collateral that becomes an accession.

(b) If a security interest is perfected when the collateral becomes an
accession, the security interest remains perfected in the collateral.

(c) Except as otherwise provided in subsection (d) of this section, the other
provisions of this part 3 determine the priority of a security interest in an accession.

(d) A security interest in an accession is subordinate to a security interest in
the whole which is perfected by compliance with the requirements of a certificate-of-title statute under section 4-9-311 (b).

(e) After default, subject to part 6 of this article, a secured party may remove
an accession from other goods if the security interest in the accession has priority
over the claims of every person having an interest in the whole.

(f) A secured party that removes an accession from other goods under
subsection (e) of this section shall promptly reimburse any holder of a security
interest or other lien on, or owner of, the whole or of the other goods, other than the
debtor, for the cost of repair of any physical injury to the whole or the other goods.
The secured party need not reimburse the holder or owner for any diminution in
value of the whole or the other goods caused by the absence of the accession
removed or by any necessity for replacing it. A person entitled to reimbursement
may refuse permission to remove until the secured party gives adequate assurance
for the performance of the obligation to reimburse.

Legislative History

Source: L. 2001: Entire article R&RE, p. 1368, � 1, effective July 1.