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Session Laws, 1999
Volume 796, Page 2050   View pdf image
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(1) TO THE EXTENT THAT THE GOODS ARE PURCHASE-MONEY
COLLATERAL WITH RESPECT TO THAT SECURITY INTEREST;

(2) IF THE SECURITY INTEREST IS IN INVENTORY THAT IS OR WAS
PURCHASE-MONEY COLLATERAL, ALSO TO THE EXTENT THAT THE SECURITY
INTEREST SECURES A PURCHASE-MONEY OBLIGATION INCURRED WITH RESPECT TO
OTHER INVENTORY IN WHICH THE SECURED PARTY HOLDS OR HELD A
PURCHASE-MONEY SECURITY INTEREST; AND

(3) ALSO TO THE EXTENT THAT THE SECURITY INTEREST SECURES A
PURCHASE-MONEY OBLIGATION INCURRED WITH RESPECT TO SOFTWARE IN WHICH
THE SECURED PARTY HOLDS OR HELD A PURCHASE-MONEY SECURITY INTEREST.

(C) A SECURITY INTEREST IN SOFTWARE IS A PURCHASE-MONEY SECURITY
INTEREST TO THE EXTENT THAT THE SECURITY INTEREST ALSO SECURES A
PURCHASE-MONEY OBLIGATION INCURRED WITH RESPECT TO GOODS IN WHICH
THE SECURED PARTY HOLDS OR HELD A PURCHASE-MONEY SECURITY INTEREST IF:

(1) THE DEBTOR ACQUIRED ITS INTEREST IN THE SOFTWARE IN AN
INTEGRATED TRANSACTION IN WHICH IT ACQUIRED AN INTEREST IN THE GOODS;
AND

(2) THE DEBTOR ACQUIRED ITS INTEREST IN THE SOFTWARE FOR THE
PRINCIPAL PURPOSE OF USING THE SOFTWARE IN THE GOODS.

(D) THE SECURITY INTEREST OF A CONSIGNOR IN GOODS THAT ARE THE
SUBJECT OF A CONSIGNMENT IS A PURCHASE-MONEY SECURITY INTEREST IN
INVENTORY.

(E) IF THE EXTENT TO WHICH A SECURITY INTEREST IS A PURCHASE-MONEY
SECURITY INTEREST DEPENDS ON THE APPLICATION OF A PAYMENT TO A
PARTICULAR OBLIGATION, THE PAYMENT MUST BE APPLIED:

(1) IN ACCORDANCE WITH ANY REASONABLE METHOD OF APPLICATION
TO WHICH THE PARTIES AGREE;

(2) IN THE ABSENCE OF THE PARTIES' AGREEMENT TO A REASONABLE
METHOD, IN ACCORDANCE WITH ANY INTENTION OF THE OBLIGOR MANIFESTED AT
OR BEFORE THE TIME OF PAYMENT; OR

(3) IN THE ABSENCE OF AN AGREEMENT TO A REASONABLE METHOD
AND A TIMELY MANIFESTATION OF THE OBLIGOR'S INTENTION, IN THE FOLLOWING
ORDER:

(A) TO OBLIGATIONS THAT ARE NOT SECURED; AND

(B) IF MORE THAN ONE OBLIGATION IS SECURED, TO OBLIGATIONS
SECURED BY PURCHASE-MONEY SECURITY INTERESTS IN THE ORDER IN WHICH
THOSE OBLIGATIONS WERE INCURRED.

(F) A PURCHASE-MONEY SECURITY INTEREST DOES NOT LOSE ITS STATUS AS
SUCH, EVEN IF:

 

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Session Laws, 1999
Volume 796, Page 2050   View pdf image
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