(a)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 IC 26-1-9.1-327, 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 twenty
(b)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 pro
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(a) 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 IC 26-1-9.1-327, 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 twenty
(20) days thereafter.
(b) 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 IC 26-1-9.1-330, and,
except as otherwise provided in IC 26-1-9.1-327, 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 a signed notification
to the holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the
notification within five (5) 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) Subsection (b)(2) through (b)(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 IC 26-1-9.1-312(f),
before the beginning of the twenty (20) day period thereunder.
(d) 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 IC 26-1-9.1-327, 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 a signed notification
to the holder of the conflicting security interest;
(3) the holder of the conflicting security interest receives the
notification within six (6) 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) Subsection (d)(2) through (d)(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 IC 26-1-9.1-312(f),
before the beginning of the twenty (20) day period thereunder.
(f) 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 IC 26-1-9.1-327, 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) If more than one (1) 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, IC 26-1-9.1-322(a) applies to the qualifying
security interests.