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Session Laws, 1999
Volume 796, Page 2092   View pdf image
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(C) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (D), THE OTHER
PROVISIONS OF THIS PART DETERMINE THE PRIORITY OF A SECURITY INTEREST IN
AN ACCESSION.

(D) A SECURITY INTEREST IN AN ACCESSION IS SUBORDINATE TO A SECURITY
INTEREST IN THE WHOLE WHICH IS PERFECTED BY COMPLIANCE WITH THE
REQUIREMENTS OF A CERTIFICATE-OF-TITLE STATUTE UNDER § 9-311(B).

(E) AFTER DEFAULT, SUBJECT TO SUBTITLE 6, A SECURED PARTY MAY
REMOVE AN ACCESSION FROM OTHER GOODS IF THE SECURITY INTEREST IN THE
ACCESSION HAS PRIORITY OVER THE CLAIMS OF EVERY PERSON HAVING AN
INTEREST IN THE WHOLE.

(F) A SECURED PARTY THAT REMOVES AN ACCESSION FROM OTHER GOODS
UNDER SUBSECTION (E) SHALL PROMPTLY REIMBURSE ANY ENCUMBRANCER OR
OWNER OF THE WHOLE OR OF THE OTHER GOODS, OTHER THAN THE DEBTOR, FOR
THE COST OF REPAIR OF ANY PHYSICAL INJURY TO THE WHOLE OR THE OTHER
GOODS. THE SECURED PARTY NEED NOT REIMBURSE THE ENCUMBRANCER OR
OWNER FOR ANY DIMINUTION IN VALUE OF THE WHOLE OR THE OTHER GOODS
CAUSED BY THE ABSENCE OF THE ACCESSION REMOVED OR BY ANY NECESSITY FOR
REPLACING IT. A PERSON ENTITLED TO REIMBURSEMENT MAY REFUSE PERMISSION
TO REMOVE UNTIL THE SECURED PARTY GIVES ADEQUATE ASSURANCE FOR THE
PERFORMANCE OF THE OBLIGATION TO REIMBURSE.

9-336. COMMINGLED GOODS.

(A) IN THIS SECTION, "COMMINGLED GOODS" MEANS GOODS THAT ARE
PHYSICALLY UNITED WITH OTHER GOODS IN SUCH A MANNER THAT THEIR IDENTITY
IS LOST IN A PRODUCT OR MASS.

(B) A SECURITY INTEREST DOES NOT EXIST IN COMMINGLED GOODS AS SUCH.
HOWEVER, A SECURITY INTEREST MAY ATTACH TO A PRODUCT OR MASS THAT
RESULTS WHEN GOODS BECOME COMMINGLED GOODS.

(C) IF COLLATERAL BECOMES COMMINGLED GOODS, A SECURITY INTEREST
ATTACHES TO THE PRODUCT OR MASS.

(D) IF A SECURITY INTEREST IN COLLATERAL IS PERFECTED BEFORE THE
COLLATERAL BECOMES COMMINGLED GOODS, THE SECURITY INTEREST THAT
ATTACHES TO THE PRODUCT OR MASS UNDER SUBSECTION (C) IS PERFECTED.

(E) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (F), THE OTHER
PROVISIONS OF THIS PART DETERMINE THE PRIORITY OF A SECURITY INTEREST
THAT ATTACHES TO THE PRODUCT OR MASS UNDER SUBSECTION (C).

(F) IF MORE THAN ONE SECURITY INTEREST ATTACHES TO THE PRODUCT OR
MASS UNDER SUBSECTION (C), THE FOLLOWING RULES DETERMINE PRIORITY:

(1) A SECURITY INTEREST THAT IS PERFECTED UNDER SUBSECTION (D)
HAS PRIORITY OVER A SECURITY INTEREST THAT IS UNPERFECTED AT THE TIME
THE COLLATERAL BECOMES COMMINGLED GOODS.

 

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Session Laws, 1999
Volume 796, Page 2092   View pdf image
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