Section 9--334. Priority of Security Interests in Fixtures and Crops  


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  • (a) Security  interest  in  fixtures  under  this  article. A security
      interest under this article may be created in goods that are fixtures or
      may continue in goods that become fixtures. A security interest does not
      exist under this article in  ordinary  building  materials  incorporated
      into an improvement on land.
        (b) Security  interest  in  fixtures  under  real  property  law. This
      article does not prevent creation of an encumbrance upon fixtures  under
      real property law.
        (c) General  rule:  subordination of security interest in fixtures. In
      cases not governed by subsections (d) through (h), a  security  interest
      in  fixtures is subordinate to a conflicting interest of an encumbrancer
      or owner of the related real property other than the debtor.
        (d) Fixtures purchase-money priority. Except as otherwise provided  in
      subsection  (h),  a perfected security interest in fixtures has priority
      over a conflicting interest of an encumbrancer  or  owner  of  the  real
      property  if the debtor has an interest of record in or is in possession
      of the real property and:
             (1) the security interest is a purchase-money security interest;
             (2) the interest of the encumbrancer or owner arises  before  the
                 goods become fixtures; and
             (3) the security interest is perfected by a fixture filing before
                 the goods become fixtures or within 20 days thereafter.
        (e) Priority  of  security interest in fixtures over interests in real
      property. A perfected security interest in fixtures has priority over  a
      conflicting  interest  of  an encumbrancer or owner of the real property
      if:
             (1) the debtor has an interest of record in the real property  or
                 is  in  possession  of  the  real  property  and the security
                 interest:
                 (A) is perfected by a fixture filing before the  interest  of
                     the encumbrancer or owner is of record; and
                 (B) has   priority   over   any  conflicting  interest  of  a
                     predecessor in title of the encumbrancer or owner;
             (2) before the goods become fixtures, the  security  interest  is
                 perfected  by  any  method  permitted by this article and the
                 fixtures are readily removable:
                 (A) factory or office machines;
                 (B) equipment that is not primarily used or leased for use in
                     the operation of the real property; or
                 (C) replacements of domestic  appliances  that  are  consumer
                     goods;
             (3) the  conflicting  interest  is  a  lien  on the real property
                 obtained by legal or equitable proceedings after the security
                 interest was  perfected  by  any  method  permitted  by  this
                 article; or
             (4) the security interest is:
                 (A) created  in  a  manufactured  home in a manufactured-home
                     transaction; and
                 (B) perfected pursuant to  a  statute  described  in  Section                  9--311(a)(2).
        (f) Priority  based  on  consent,  disclaimer,  or  right to remove. A
      security interest in fixtures, whether or not  perfected,  has  priority
      over  a  conflicting  interest  of  an encumbrancer or owner of the real
      property if:
             (1) the encumbrancer or owner has, in  an  authenticated  record,
                 consented  to the security interest or disclaimed an interest
                 in the goods as fixtures; or
    
             (2) the debtor has a right to remove the  goods  as  against  the
                 encumbrancer or owner.
        (g) Continuation  of  paragraph  (f)(2)  priority. The priority of the
      security interest under paragraph (f)(2) continues for a reasonable time
      if the debtor's right to remove the goods as against the encumbrancer or
      owner terminates.
        (h) Priority of construction mortgage. A mortgage  is  a  construction
      mortgage  to  the  extent that it secures an obligation incurred for the
      construction of an improvement on land, including the  acquisition  cost
      of  the  land, if a recorded record of the mortgage so indicates. Except
      as otherwise provided in subsections (e) and (f), a security interest in
      fixtures is subordinate to a construction mortgage if a  record  of  the
      mortgage  is  recorded  before  the  goods become fixtures and the goods
      become fixtures before the completion of the  construction.  A  mortgage
      has  this  priority to the same extent as a construction mortgage to the
      extent that it is given to refinance a construction mortgage.
        (i) Priority of security  interest  in  crops.  A  perfected  security
      interest  in  crops  growing  on  real  property  has  priority  over  a
      conflicting interest of an encumbrancer or owner of the real property if
      the debtor has an interest of record in or is in possession of the  real
      property.
        (j) Subsection   (i)   prevails.  Subsection  (i)  prevails  over  any
      inconsistent provisions with this article or any other chapter of law.