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<section article="gcl" article_name="Commercial Law" number="9-324" title_number="9" title_name="Secured Transactions" subtitle_number="3" subtitle_name="Perfection and Priority">
  <level label="a">
    <text>Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in § 9-327, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within 20 days thereafter.</text>
  </level>
  <level label="b">
    <text>Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in § 9-330, and, except as otherwise provided in § 9-327, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:</text>
    <level label="1">
      <text>The purchase-money security interest is perfected when the debtor receives possession of the inventory;</text>
    </level>
    <level label="2">
      <text>The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;</text>
    </level>
    <level label="3">
      <text>The holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and</text>
    </level>
    <level label="4">
      <text>The notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.</text>
    </level>
  </level>
  <level label="c">
    <text>Subsection (b)(2) through (4) applies only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:</text>
    <level label="1">
      <text>If the purchase-money security interest is perfected by filing, before the date of the filing; or</text>
    </level>
    <level label="2">
      <text>If the purchase-money security interest is temporarily perfected without filing or possession under § 9-312(f), before the beginning of the 20-day period thereunder.</text>
    </level>
  </level>
  <level label="d">
    <text>Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in § 9-327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:</text>
    <level label="1">
      <text>The purchase-money security interest is perfected when the debtor receives possession of the livestock;</text>
    </level>
    <level label="2">
      <text>The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;</text>
    </level>
    <level label="3">
      <text>The holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and</text>
    </level>
    <level label="4">
      <text>The notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.</text>
    </level>
  </level>
  <level label="e">
    <text>Subsection (d)(2) through (4) applies only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:</text>
    <level label="1">
      <text>If the purchase-money security interest is perfected by filing, before the date of the filing; or</text>
    </level>
    <level label="2">
      <text>If the purchase-money security interest is temporarily perfected without filing or possession under § 9-312(f), before the beginning of the 20-day period thereunder.</text>
    </level>
  </level>
  <level label="f">
    <text>Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in § 9-327, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.</text>
  </level>
  <level label="g">
    <text>If more than one security interest qualifies for priority in the same collateral under subsection (a), subsection (b), subsection (d), or subsection (f):</text>
    <level label="1">
      <text>A security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and</text>
    </level>
    <level label="2">
      <text>In all other cases, § 9-322(a) applies to the qualifying security interests.</text>
    </level>
  </level>
</section>
