HARRY HUGHES, Governor

2901

(A)  WHICH IS PERFECTED UNDER § 9-304 (PERMISSIVE
FILING AND TEMPORARY PERFECTION) OR UNDER § 9-306
(PERFECTION AS TO PROCEEDS) IF HE ACTS WITHOUT KNOWLEDGE
THAT THE SPECIFIC PAPER OR INSTRUMENT IS SUBJECT TO A
SECURITY INTEREST; OR

(B)  WHICH IS CLAIMED MERELY AS PROCEEDS OF
INVENTORY SUBJECT TO A SECURITY INTEREST (§ 9-306) EVEN
THOUGH HE KNOWS THAT THE SPECIFIC PAPER OR INSTRUMENT IS
SUBJECT TO THE SECURITY INTEREST.

9-312.

[(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 nonpossessory interests
in chattel paper or nonnegotiable 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.]

(1)  THE RULES OF PRIORITY STATED IN OTHER SECTIONS OF
THIS SUBTITLE AND IN THE FOLLOWING SECTIONS SHALL GOVERN
WHEN APPLICABLE: § 4-208 WITH RESPECT TO THE SECURITY
INTERESTS OF COLLECTING BANKS IN ITEMS BEING COLLECTED,
ACCOMPANYING DOCUMENTS AND PROCEEDS; § 9-103 ON SECURITY
INTERESTS RELATED TO OTHER JURISDICTIONS; § 9-114 ON
CONSIGNMENTS.

(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