§9-324. Priority of purchase-money security interests
(a)General rule: purchase-money priority. 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 R.S. 10:9-327, 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 days thereafter.
(b)Inventory purchase-money priority. Subject to Subsection (c) of this Section and
except as otherwise provided in Subsection (g) of this Section, a perfected purchase-money
security interest in inventory has priority over a
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§9-324. Priority of purchase-money security interests
(a) General rule: purchase-money priority. 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 R.S. 10:9-327, 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 days thereafter.
(b) Inventory purchase-money priority. Subject to Subsection (c) of this Section and
except as otherwise provided in Subsection (g) of this Section, 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
R.S. 10:9-330, and, except as otherwise provided in R.S. 10:9-327, 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
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) Holders of conflicting inventory security interests to be notified. Subsections
(b)(2) through (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 R.S. 10:9-312(f), before the beginning of the twenty-day period thereunder.
(d) Livestock purchase-money priority. Subject to Subsection (e) of this Section and
except as otherwise provided in Subsection (g) of this Section, 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 R.S. 10:9-327, 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
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) Holders of conflicting livestock security interests to be notified. Subsections
(d)(2) through (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 R.S. 10:9-312(f), before the beginning of the twenty-day period thereunder.
(f) Software purchase-money priority. 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 R.S. 10:9-327,
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) Conflicting purchase-money security interests. If more than one 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, R.S. 10:9-322(a) applies to the qualifying security interests.