2902

LAWS OF MARYLAND

Ch. 824

(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.]

(3)  A PERFECTED PURCHASE MONEY SECURITY INTEREST IN
INVENTORY HAS PRIORITY OVER A CONFLICTING SECURITY INTEREST
IN THE SAME INVENTORY AND ALSO HAS PRIORITY IN IDENTIFIABLE
CASH PROCEEDS RECEIVED ON OR BEFORE THE DELIVERY OF THE
INVENTORY TO A BUYER IF

(A)  THE PURCHASE MONEY SECURITY INTEREST IS
PERFECTED AT THE TIME THE DEBTOR RECEIVES POSSESSION OF THE
INVENTORY; AND

(B)  THE PURCHASE MONEY SECURED PARTY GIVES
NOTIFICATION IN WRITING TO THE HOLDER OF THE CONFLICTING
SECURITY INTEREST IF THE HOLDER HAD FILED A FINANCING
STATEMENT COVERING THE SAME TYPES OF INVENTORY (I) BEFORE
THE DATE OF THE FILING MADE BY THE PURCHASE MONEY SECURED
PARTY, OR (II) BEFORE THE BEGINNING OF THE 21-DAY PERIOD
WHERE THE PURCHASE MONEY SECURITY INTEREST IS TEMPORARILY
PERFECTED WITHOUT FILING OR POSSESSION (SUBSECTION (5) OF §
9-304); AND

(C)  THE HOLDER OF THE CONFLICTING SECURITY
INTEREST RECEIVES THE NOTIFICATION WITHIN 5 YEARS BEFORE THE
DEBTOR RECEIVES POSSESSION OF THE INVENTORY; AND

(D)  THE 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 collateral
other than inventory has priority over a conflicting
security interest in the same collateral OR ITS PROCEEDS if
the purchase money security interest is perfected at the
time the debtor receives possession of the collateral or
within ten days thereafter.

(5)  In all cases not governed by other rules stated in
this section (including cases of purchase money security
interests which do not qualify for the special priorities
set forth in subsections (3) and (4) of this section),
priority between conflicting security interests in the same
collateral shall be determined [as follows: