§ 34.1-9-336 — Commingled goods

(a) 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.
(b) 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.
(c) If collateral becomes commingled goods, a security
interest attaches to the product or mass.
(d) 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
(c) is perfected.
(e) Except as otherwise provided in subsection (f), the
other provisions of this part determine the priority of a
security interest that attaches to the product or mass under
subsection (c).
(f) If more than one (1) security interest attaches to the
product or mass under subsection (c), the following rules
determine priority:
(i) A security interest that is perfected under
subsection (d) has priority over a security interest that is
unperfected at the time the collateral becomes commingled goods;
(ii) If more than one (1) security interest is
perfected under subsection (d), the security interests rank
equally in proportion to value of the collateral at the time it
became commingled goods.