J. MILLARD TAWES, Governor                        931

9—310. Priority of Certain Liens Arising by Operation of Law.—

When a person in the ordinary course of his business furnishes
services or materials with respect to goods subject to a security
interest, a lien upon goods in the possession of such person given
by statute or rule of law for such materials or services takes priority
over a perfected security interest unless the lien is statutory and
the statute expressly provides otherwise.

9—311. Alienability of Debtor's Rights; Judicial Process.—

The debtor's rights in collateral may be voluntarily or involun-
tarily transferred (by way of sale, creation of a security interest,
attachment, levy, garnishment or other judicial process) notwith-
standing a provision in the security agreement prohibiting any trans-
fer or making the transfer constitute a default.

9—312. Priorities Among Conflicting Security Interests in the
Same Collateral.—

(1)  The rules of priority stated in the following sections shall
govern where applicable: Section 4—208 with respect to the security
interest of collecting banks in items being collected, accompanying
documents and proceeds; Section 9—301 on certain priorities; Sec-
tion 9—304 on goods covered by documents; Section 9—306 on pro-
ceeds and repossessions; Section 9—307 on buyers of goods; Section
9—308 on possessory against non-possessory interests in chattel
paper or non-negotiable instruments; Section 9—309 on security
interests in negotiable instruments, documents or securities; Section
9—310 on priorities between perfected security interests and Hens
by operation of law; Section 9—313 on security interests in fixtures
as against interests in real estate; Section 9—314 on security inte-
rests in accessions as against interest in goods; Section 9—315 on
conflicting security interests where goods lose their identity or
become part of a product; and Section 9—316 on contractual sub-
ordination.

(2)  A perfected security interest in crops for new value given to
enable the debtor to produce the crops during the production season
and given not more than three months before the crops become grow-
ing crops by planting or otherwise takes priority over an earlier
perfected security interest to the extent that such earlier interest
secures obligations due more than six months before the crops be-
come growing crops by planting or otherwise, even though the person
giving new value had knowledge of the earlier security interest.

(3)  A purchase money security interest in inventory collateral
has priority over a conflicting security interest in the same collateral
if

(a)  the purchase money security interest is perfected at the time
the debtor receives possession of the collateral; and

(b)  any secured party whose security interest is known to the
holder of the purchase money security interest or who, prior to the
date of the filing made by the holder of the purchase money security
interest, had filed a financing statement covering the same items or
type of inventory, has received notification of the purchase money
security interest before the debtor receives possession of the col-
lateral covered by the purchase money security interest; and