284

LAWS OF MARYLAND

[Ch. 49

persons subsequently acquiring interests in the whole
except as stated in subsection (3) but is invalid against
any person with an interest in the whole at the time the
security interest attaches to the goods who has not in
writing consented to the security interest or disclaimed
an interest in the goods as part of the whole.

(3)   The security interests described in subsections
(1) and (2) do not take priority over

(a)    A subsequent purchaser for value of any
interest in the whole; or

(b)   A creditor with a lien on the whole
subsequently obtained by judicial proceedings; or

(c)     A creditor with a prior perfected
security interest in the whole to the extent that he
makes subsequent advances; if the subsequent purchase is
made, the lien by judicial proceedings obtained or the
subsequent advance under the prior perfected security
interest is made or contracted for without knowledge of
the security interest and before it is perfected. A
purchaser of the whole at a foreclosure 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 subject to the
provisions of [part] SUBTITLE 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 adequate 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 commingled that their identity is lost in
the product or mass; or