§ 26-1-9.1-336 — Commingled goods

Indiana § 26-1-9.1-336

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 9.1: Secured Transactions

Text

(a) As used 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) 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) If collateral becomes commingled goods, a security interest
attaches to the product or mass.
(d) 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) Except as otherwise provided in subsection (f), the other
provisions of IC 26-1-9.1-301 through IC 26-1-9.1-342 determine the
priority of a security interest that attaches to the product or mass under
subsection (c).
(f) If more than one (1) 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 (1) security interest is perfected under
subsection (d), the security interests rank equally in proportion to
value of the collateral at the time it became commingled goods.

Legislative History

As added by P.L.57-2000, SEC.45.