§ 41-09-56 — (9-336) Commingled goods

1. 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.
2. 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.
3. If collateral becomes commingled goods, a security interest attaches to the product or
mass.
4. 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 3 is perfected.
5. Except as otherwise provided in subsection 6, the other provisions of this part
determine the priority of a security interest that attaches to the product or mass under
subsection 3.
6. If more than one security interest attaches to the product or mass under subsection 3,
the following rules determine priority:
a. A security interest that is perfected under subsection 4 has priority over a security
interest that is unperfected at the time the collateral becomes commingled goods.
b. If more than one security interest is perfected under subsection 4, the security
interests rank equally in proportion to the value of the collateral at the time it
became commingled goods.