1.General rule — purchase-money priority. Except as otherwise provided in subsection
7, 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 554.9327, 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 twenty days thereafter.
2.Inventory purchase-money priority. Subject to subsection 3 and except as otherwise
provided in subsection 7, a perfected purchase-money security interest in inventory has
priority over a conflicting security interest in the same inventory, has priority over a
conflicting secur
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1. General rule — purchase-money priority. Except as otherwise provided in subsection
7, 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 554.9327, 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 twenty days thereafter.
2. Inventory purchase-money priority. Subject to subsection 3 and except as otherwise
provided in subsection 7, 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 554.9330, and, except
as otherwise provided in section 554.9327, 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:
a. the purchase-money security interest is perfected when the debtor receives possession
of the inventory;
b. the purchase-money secured party sends a signed notification to the holder of the
conflicting security interest;
c. the holder of the conflicting security interest receives the notification within five years
before the debtor receives possession of the inventory; and
d. 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.
3. Holders of conflicting inventory security interests to be notified. Subsection 2,
paragraphs “b” through “d”, apply only if the holder of the conflicting security interest had
filed a financing statement covering the same types of inventory:
a. if the purchase-money security interest is perfected by filing, before the date of the
filing; or
b. if the purchase-money security interest is temporarily perfected without filing or
possession under section 554.9312, subsection 6, before the beginning of the twenty-day
period thereunder.
4. Livestock purchase-money priority. Subject to subsection 5 and except as otherwise
provided in subsection 7, 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 554.9327, a perfected security interest in their
identifiable proceeds and identifiable products in their unmanufactured states also has
priority, if:
a. the purchase-money security interest is perfected when the debtor receives possession
of the livestock;
b. the purchase-money secured party sends a signed notification to the holder of the
conflicting security interest;
c. the holder of the conflicting security interest receives the notification within six months
before the debtor receives possession of the livestock; and
d. 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.
5. Holders of conflicting livestock security interests to be notified. Subsection 4,
paragraphs “b” through “d”, apply only if the holder of the conflicting security interest had
filed a financing statement covering the same types of livestock:
a. if the purchase-money security interest is perfected by filing, before the date of the
filing; or
b. if the purchase-money security interest is temporarily perfected without filing or
possession under section 554.9312, subsection 6, before the beginning of the twenty-day
period thereunder.
6. Software purchase-money priority. Except as otherwise provided in subsection 7,
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
554.9327, 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.
7. Conflicting purchase-money security interests. If more than one security interest
qualifies for priority in the same collateral under subsection 1, 2, 4, or 6:
a. 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
b. in all other cases, section 554.9322, subsection 1, applies to the qualifying security
interests.