Section 9--334. Priority of Security Interests in Fixtures and Crops.\n (a) Security interest in fixtures under this article. A security\ninterest under this article may be created in goods that are fixtures or\nmay continue in goods that become fixtures. A security interest does not\nexist under this article in ordinary building materials incorporated\ninto an improvement on land.\n (b) Security interest in fixtures under real property law. This\narticle does not prevent creation of an encumbrance upon fixtures under\nreal property law.\n (c) General rule: subordination of security interest in fixtures. In\ncases not governed by subsections (d) through (h), a security interest\nin fixtures is subordinate to a conflicting interest of an encumbrancer\nor owner of the related real propert
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Section 9--334. Priority of Security Interests in Fixtures and Crops.\n (a) Security interest in fixtures under this article. A security\ninterest under this article may be created in goods that are fixtures or\nmay continue in goods that become fixtures. A security interest does not\nexist under this article in ordinary building materials incorporated\ninto an improvement on land.\n (b) Security interest in fixtures under real property law. This\narticle does not prevent creation of an encumbrance upon fixtures under\nreal property law.\n (c) General rule: subordination of security interest in fixtures. In\ncases not governed by subsections (d) through (h), a security interest\nin fixtures is subordinate to a conflicting interest of an encumbrancer\nor owner of the related real property other than the debtor.\n (d) Fixtures purchase-money priority. Except as otherwise provided in\nsubsection (h), a perfected security interest in fixtures has priority\nover a conflicting interest of an encumbrancer or owner of the real\nproperty if the debtor has an interest of record in or is in possession\nof the real property and:\n (1) the security interest is a purchase-money security interest;\n (2) the interest of the encumbrancer or owner arises before the\n goods become fixtures; and\n (3) the security interest is perfected by a fixture filing before\n the goods become fixtures or within 20 days thereafter.\n (e) Priority of security interest in fixtures over interests in real\nproperty. A perfected security interest in fixtures has priority over a\nconflicting interest of an encumbrancer or owner of the real property\nif:\n (1) the debtor has an interest of record in the real property or\n is in possession of the real property and the security\n interest:\n (A) is perfected by a fixture filing before the interest of\n the encumbrancer or owner is of record; and\n (B) has priority over any conflicting interest of a\n predecessor in title of the encumbrancer or owner;\n (2) before the goods become fixtures, the security interest is\n perfected by any method permitted by this article and the\n fixtures are readily removable:\n (A) factory or office machines;\n (B) equipment that is not primarily used or leased for use in\n the operation of the real property; or\n (C) replacements of domestic appliances that are consumer\n goods;\n (3) the conflicting interest is a lien on the real property\n obtained by legal or equitable proceedings after the security\n interest was perfected by any method permitted by this\n article; or\n (4) the security interest is:\n (A) created in a manufactured home in a manufactured-home\n transaction; and\n (B) perfected pursuant to a statute described in Section\n 9--311(a)(2).\n * (f) Priority based on consent, disclaimer, or right to remove. A\nsecurity interest in fixtures, whether or not perfected, has priority\nover a conflicting interest of an encumbrancer or owner of the real\nproperty if:\n (1) the encumbrancer or owner has, in an authenticated record,\n consented to the security interest or disclaimed an interest\n in the goods as fixtures; or\n (2) the debtor has a right to remove the goods as against the\n encumbrancer or owner.\n * NB Effective until June 3, 2026\n* (f) Priority based on consent, disclaimer, or right to remove. A\nsecurity interest in fixtures, whether or not perfected, has priority\nover a conflicting interest of an encumbrancer or owner of the real\nproperty if:\n (1) the encumbrancer or owner has, in a signed record, consented\n to the security interest or disclaimed an interest in the\n goods as fixtures; or\n (2) the debtor has a right to remove the goods as against the\n encumbrancer or owner.\n * NB Effective June 3, 2026\n (g) Continuation of paragraph (f)(2) priority. The priority of the\nsecurity interest under paragraph (f)(2) continues for a reasonable time\nif the debtor's right to remove the goods as against the encumbrancer or\nowner terminates.\n (h) Priority of construction mortgage. A mortgage is a construction\nmortgage to the extent that it secures an obligation incurred for the\nconstruction of an improvement on land, including the acquisition cost\nof the land, if a recorded record of the mortgage so indicates. Except\nas otherwise provided in subsections (e) and (f), a security interest in\nfixtures is subordinate to a construction mortgage if a record of the\nmortgage is recorded before the goods become fixtures and the goods\nbecome fixtures before the completion of the construction. A mortgage\nhas this priority to the same extent as a construction mortgage to the\nextent that it is given to refinance a construction mortgage.\n (i) Priority of security interest in crops. A perfected security\ninterest in crops growing on real property has priority over a\nconflicting interest of an encumbrancer or owner of the real property if\nthe debtor has an interest of record in or is in possession of the real\nproperty.\n (j) Subsection (i) prevails. Subsection (i) prevails over any\ninconsistent provisions with this article or any other chapter of law.\n