§ 9-336 — Commingled Goods

Section 9--336. Commingled Goods.\n (a) "Commingled goods." In this section, "commingled goods" means\ngoods that are physically united with other goods in such a manner that\ntheir identity is lost in a product or mass.\n (b) No security interest in commingled goods as such. A security\ninterest does not exist in commingled goods as such. However, a security\ninterest may attach to a product or mass that results when goods become\ncommingled goods.\n (c) Attachment of security interest to product or mass. If collateral\nbecomes commingled goods, a security interest attaches to the product or\nmass.\n (d) Perfection of security interest. If a security interest in\ncollateral is perfected before the collateral becomes commingled goods,\nthe security interest that attaches to the product or mass under\nsubsection (c) is perfected.\n (e) Priority of security interest Except as otherwise provided in\nsubsection (f), the other provisions of this part determine the priority\nof a security interest that attaches to the product or mass under\nsubsection (c).\n (f) Conflicting security interests in product or mass If more than one\nsecurity interest attaches to the product or mass under subsection (c),\nthe following rules determine priority:\n (1) A security interest that is perfected under subsection (d)\n has priority over a security interest that is unperfected at\n the time the collateral becomes commingled goods.\n (2) If more than one security interest is perfected under\n subsection (d), the security interests rank equally in\n proportion to the value of the collateral at the time it\n became commingled goods.\n