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<section article="gcl" article_name="Commercial Law" number="9-334" title_number="9" title_name="Secured Transactions" subtitle_number="3" subtitle_name="Perfection and Priority">
  <level label="a">
    <text>A security interest under this article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this title in ordinary building materials incorporated into an improvement on land.</text>
  </level>
  <level label="b">
    <text>This title does not prevent creation of an encumbrance upon fixtures under real property law.</text>
  </level>
  <level label="c">
    <text>In cases not governed by subsections (d) through (h), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.</text>
  </level>
  <level label="d">
    <text>Except as otherwise provided in subsection (h), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:</text>
    <level label="1">
      <text>The security interest is a purchase-money security interest;</text>
    </level>
    <level label="2">
      <text>The interest of the encumbrancer or owner arises before the goods become fixtures; and</text>
    </level>
    <level label="3">
      <text>The security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.</text>
    </level>
  </level>
  <level label="e">
    <text>A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:</text>
    <level label="1">
      <text>The debtor has an interest of record in the real property or is in possession of the real property and the security interest:</text>
      <level label="A">
        <text>Is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and</text>
      </level>
      <level label="B">
        <text>Has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;</text>
      </level>
    </level>
    <level label="2">
      <text>Before the goods become fixtures, the security interest is perfected by any method permitted by this title and the fixtures are readily removable:</text>
      <level label="A">
        <text>Factory or office machines;</text>
      </level>
      <level label="B">
        <text>Equipment that is not primarily used or leased for use in the operation of the real property; or</text>
      </level>
      <level label="C">
        <text>Replacements of domestic appliances that are consumer goods;</text>
      </level>
    </level>
    <level label="3">
      <text>The conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article; or</text>
    </level>
    <level label="4">
      <text>The security interest is:</text>
      <level label="A">
        <text>Created in a manufactured home in a manufactured-home transaction; and</text>
      </level>
      <level label="B">
        <text>Perfected pursuant to a statute described in § 9-311(a)(2).</text>
      </level>
    </level>
  </level>
  <level label="f">
    <text>A security interest in fixtures, whether or not perfected, has priority over a conflicting interest of an encumbrancer or owner of the real property if:</text>
    <level label="1">
      <text>The encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or</text>
    </level>
    <level label="2">
      <text>The debtor has a right to remove the goods as against the encumbrancer or owner.</text>
    </level>
  </level>
  <level label="g">
    <text>The priority of the security interest under subsection (f)(2) continues for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer or owner terminates.</text>
  </level>
  <level label="h">
    <text>A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f), a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.</text>
  </level>
  <level label="i">
    <text>A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.</text>
  </level>
  <level label="j">
    <text>Subsection (i) prevails over any inconsistent statutes of this State.</text>
  </level>
</section>
