(a)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
section 34.1-9-327, 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 (20) days
thereafter.
(b)Subject to subsection (c) and except as otherwise
provided in subsection (g), 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
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(a) 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
section 34.1-9-327, 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 (20) days
thereafter.
(b) Subject to subsection (c) and except as otherwise
provided in subsection (g), 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 section 34.1-9-330, and, except as otherwise
provided in section 34.1-9-327, 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:
(i) The purchase-money security interest is perfected
when the debtor receives possession of the inventory;
(ii) The purchase-money secured party sends an
authenticated notification to the holder of the conflicting
security interest;
(iii) The holder of the conflicting security interest
receives the notification within five (5) years before the
debtor receives possession of the inventory; and
(iv) 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) Paragraphs (b)(ii) through (iv) apply only if the
holder of the conflicting security interest had filed a
financing statement covering the same types of inventory:
(i) If the purchase-money security interest is
perfected by filing, before the date of the filing; or
(ii) If the purchase-money security interest is
temporarily perfected without filing or possession under section
34.1-9-312(f), before the beginning of the twenty (20) day
period thereunder.
(d) Subject to subsection (e) and except as otherwise
provided in subsection (g), 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 section 34.1-9-327, a perfected
security interest in their identifiable proceeds and
identifiable products in their unmanufactured states also has
priority, if:
(i) The purchase-money security interest is perfected
when the debtor receives possession of the livestock;
(ii) The purchase-money secured party sends an
authenticated notification to the holder of the conflicting
security interest;
(iii) The holder of the conflicting security interest
receives the notification within six (6) months before the
debtor receives possession of the livestock; and
(iv) 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) Paragraphs (d)(ii) through (iv) apply only if the
holder of the conflicting security interest had filed a
financing statement covering the same types of livestock:
(i) If the purchase-money security interest is
perfected by filing, before the date of the filing; or
(ii) If the purchase-money security interest is
temporarily perfected without filing or possession under section
34.1-9-312(f), before the beginning of the twenty (20) day
period thereunder.
(f) 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 section
34.1-9-327, 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) If more than one (1) security interest qualifies for
priority in the same collateral under subsection (a), (b), (d)
or (f):
(i) 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
(ii) In all other cases, section 34.1-9-322(a)
applies to the qualifying security interests.
34.1-9-324A. Priority of production-money security
interests and agricultural liens.
(a) Except as otherwise provided in subsections (c), (d)
and (e), if the requirements of subsection (b) are satisfied, a
perfected production-money security interest in production-money
crops has priority over a conflicting security interest in the
same crops and, except as otherwise provided in section
34.1-9-327, also has priority in their identifiable proceeds.
(b) A production-money security interest has priority
under subsection (a) if:
(i) The production-money security interest is
perfected by filing when the production-money secured party
first gives new value to enable the debtor to produce the crops;
(ii) The production-money secured party sends an
authenticated notification to the holder of the conflicting
security interest not less than ten (10) or more than thirty
(30) days before the production-money secured party first gives
new value to enable the debtor to produce the crops if the
holder had filed a financing statement covering the crops before
the date of the filing made by the production-money secured
party; and
(iii) The notification states that the
production-money secured party has or expects to acquire a
production-money security interest in the debtor's crops and
provides a description of the crops.
(c) Except as otherwise provided in subsection (d) or (e),
if more than one (1) security interest qualifies for priority in
the same collateral under subsection (a), the security interests
rank according to priority in time of filing under section
34.1-9-322(a).
(d) To the extent that a person holding a perfected
security interest in production-money crops that are the subject
of a production-money security interest gives new value to
enable the debtor to produce the production-money crops and the
value is in fact used for the production of the production-money
crops, the security interests rank according to priority in time
of filing under section 34.1-9-322(a).
(e) To the extent that a person holds both an agricultural
lien and a production-money security interest in the same
collateral securing the same obligations, the rules of priority
applicable to agricultural liens govern priority.