HARRY HUGHES, Governor

3293

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 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] 20 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 according to the following rules:

(a) Conflicting security interests rank according to
priority in time of filing or perfection. Priority dates from
the time a filing is first made covering the collateral or the
time the security interest is first perfected, whichever is
earlier, provided that there is no period thereafter when there
is neither filing nor perfection.