934                               LAWS OF MARYLAND                        [CH. 538

closure sale other than the holder of a perfected security interest
purchasing at his own foreclosure sale is a subsequent purchaser
within this section.

(4) When under subsections (1) or (2) and (3) a secured party
has an interest in accessions which has priority over the claims of
all persons who have interests in the whole, he may on default sub-
ject to the provisions of Part 5 remove his collateral from the whole
but he must reimburse any encumbrancer or owner of the whole who
is not the debtor and who has not otherwise agreed for the cost of
repair of any physical injury but not for any diminution in value of
the whole caused by the absence of the goods removed or by any
necessity for replacing them. A person entitled to reimbursement
may refuse permission to remove until the secured party gives ade-
quate security for the performance of this obligation.

9—315. Priority When Goods Are Commingled or Processed.—

(1)  If a security interest in goods was perfected and subsequently
the goods or a part thereof have become part of a product or mass,
the security interest continues in the product or mass if

(a)  the goods are so manufactured, processed, assembled or com-
mingled that their identity is lost in the product or mass; or

(b)  a financing statement covering the original goods also covers
the product into which the goods have been manufactured, processed
or assembled.

In a case to which paragraph (b) applies, no separate security
interest in that part of the original goods which has been manu-
factured, processed or assembled into the product may be claimed
under Section 9—314.

(2)   When under subsection (1) more than one security interest
attaches to the product or mass, they rank equally according to the
ratio that the cost of the goods to which each interest originally
attached bears to the cost of the total product or mass.

9—316. Priority Subject to Subordination.—

Nothing in this Sub-title prevents subordination by agreement by
any person entitled to priority.

9—317. Secured Party Not Obligated on Contract of Debtor.—

The mere existence of a security interest or authority given to
the debtor to dispose of or use collateral does not impose contract
or tort liability upon the secured party for the debtor's acts or
omissions.

9—318. Defenses Against Assignee; Modification of Contract After
Notification of Assignment; Term Prohibiting Assignment
Ineffective; Identification and Proof of Assignment.—

(1) Unless an account debtor has made an enforceable agreement
not to assert defenses or claims arising out of a sale as provided
in Section 9—206 the rights of an assignee are subject to

(a) all the terms of the contract between the account debtor and
assignor and any defense or claim arising therefrom; and