§ 9-322 — Priorities among Conflicting Security Interests in and Agricultural Liens on Same Collateral

Section 9--322. Priorities among Conflicting Security Interests in and\n Agricultural Liens on Same Collateral.\n (a) General priority rules. Except as otherwise provided in this\nsection, priority among conflicting security interests and agricultural\nliens in the same collateral is determined according to the following\nrules:\n (1) Conflicting perfected security interests and agricultural\n liens rank according to priority in time of filing or\n perfection. Priority dates from the earlier of the time a\n filing covering the collateral is first made or the security\n interest or agricultural lien is first perfected, if there is\n no period thereafter when there is neither filing nor\n perfection.\n (2) A perfected security interest or agricultural lien has\n priority over a conflicting unperfected security interest or\n agricultural lien.\n (3) The first security interest or agricultural lien to attach or\n become effective has priority if conflicting security\n interests and agricultural liens are unperfected.\n (b) Time of perfection: proceeds and supporting obligations. For the\npurposes of subsection (a)(1):\n (1) the time of filing or perfection as to a security interest in\n collateral is also the time of filing or perfection as to a\n security interest in proceeds; and\n (2) the time of filing or perfection as to a security interest in\n collateral supported by a supporting obligation is also the\n time of filing or perfection as to a security interest in the\n supporting obligation.\n (c) Special priority rules: proceeds and supporting obligations.\nExcept as otherwise provided in subsection (f), a security interest in\ncollateral which qualifies for priority over a conflicting security\ninterest under Section 9--327, 9--328, 9--329, 9--330, or 9--331 also\nhas priority over a conflicting security interest in:\n (1) any supporting obligation for the collateral; and\n (2) proceeds of the collateral if:\n (A) the security interest in proceeds is perfected;\n (B) the proceeds are cash proceeds or of the same type as the\n collateral; and\n (C) in the case of proceeds that are proceeds of proceeds,\n all intervening proceeds are cash proceeds, proceeds of\n the same type as the collateral, or an account relating\n to the collateral.\n (d) First-to-file priority rule for certain collateral. Subject to\nsubsection (e) and except as otherwise provided in subsection (f), if a\nsecurity interest in chattel paper, deposit accounts, negotiable\ndocuments, instruments, investment property, or letter-of-credit rights\nis perfected by a method other than filing, conflicting perfected\nsecurity interests in proceeds of the collateral rank according to\npriority in time of filing.\n (e) Applicability of subsection (d). Subsection (d) applies only if\nthe proceeds of the collateral are not cash proceeds, chattel paper,\nnegotiable documents, instruments, investment property, or\nletter-of-credit rights.\n (f) Limitations on subsections (a) through (e). Subsections (a)\nthrough (e) are subject to:\n (1) subsection (g) and the other provisions of this part;\n (2) Section 4--210 with respect to a security interest of a\n collecting bank;\n (3) Section 5--118 with respect to a security interest of an\n issuer or nominated person; and\n (4) Section 9--110 with respect to a security interest arising\n under Article 2 or 2-A.\n (g) Priority under agricultural lien statute. A perfected agricultural\nlien on collateral has priority over a conflicting security interest in\nor agricultural lien on the same collateral if the statute creating the\nagricultural lien so provides.\n (h) Special priority rules: cooperative interests.\n (1) With respect to all amounts secured, a cooperative\n organization security interest has priority over all other\n security interests in a cooperative interest.\n (2) As to security interests in cooperative interests other than\n cooperative organization security interests, Section\n 9--323(h) provides special rules for future advances.\n