Section 9--336. Commingled Goods  


Latest version.
  • (a) "Commingled  goods."  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) No  security  interest  in  commingled  goods  as such. 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) Attachment  of security interest to product or mass. If collateral
      becomes commingled goods, a security interest attaches to the product or
      mass.
        (d) Perfection  of  security  interest.  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) Priority  of  security  interest  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) Conflicting security interests in product or mass If more than one
      security  interest attaches to the product or mass under subsection (c),
      the following rules determine priority:
             (1) 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.
             (2) If  more  than  one  security  interest  is  perfected  under
                 subsection  (d),  the  security  interests  rank  equally  in
                 proportion to the value of the  collateral  at  the  time  it
                 became commingled goods.