MARVIN MANDEL, Governor

281

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

(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 growing 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 become 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 collateral covered by the
purchase money security interest; and

(c)     Such notification states that the person
giving the notice has or expects to acquire a purchase
money security interest in inventory of the debtor,
describing such inventory by item or type.

(4) A purchase money security interest in