400.9-336. Commingled goods.
Commingled goods.
400.9-336. (a) In this section, "commingled goods" means goods thatare physically united with other goods in such a manner that their identityis 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 resultswhen goods become commingled goods.
(c) If collateral becomes commingled goods, a security interestattaches to the product or mass.
(d) If a security interest in collateral is perfected before thecollateral becomes commingled goods, the security interest that attaches tothe product or mass under subsection (c) is perfected.
(e) Except as otherwise provided in subsection (f), the otherprovisions of this part determine the priority of a security interest thatattaches to the product or mass under subsection (c).
(f) If more than one security interest attaches to the product ormass under subsection (c), the following rules determine priority:
(1) A security interest that is perfected under subsection (d) haspriority over a security interest that is unperfected at the time thecollateral becomes commingled goods.
(2) If more than one security interest is perfected under subsection(d), the security interests rank equally in proportion to value of thecollateral at the time it became commingled goods.
(L. 2001 S.B. 288)Effective 7-01-01