MARVIN MANDEL, Governor

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(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 manufactured, processed or assembled
into the product may be claimed under § 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 [subtitle] 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 § 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

(b)   Any other defense or claim of the account
debtor against the assignor which accrues before the
account debtor receives notification of the assignment.

(2)   So far as the right to payment under an
assigned contract right has not already become an
account, and notwithstanding notification of the
assignment, any modification of or substitution for the
contract made in good faith and in accordance with
reasonable commercial standards is effective against an