9324 - Priority of purchase-money security interests.

     § 9324.  Priority of purchase-money security interests.        (a)  General rule: purchase-money priority.--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 section 9327 (relating to     priority of security interests in deposit account), 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.        (b)  Inventory purchase-money priority.--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     section 9330 (relating to priority of purchaser of chattel paper     or instrument); and, except as otherwise provided in section     9327, 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:            (1)  the purchase-money security interest is perfected        when the debtor receives possession of the inventory;            (2)  the purchase-money secured party sends an        authenticated notification to the holder of the conflicting        security interest;            (3)  the holder of the conflicting security interest        receives the notification within five years before the debtor        receives possession of the inventory; and            (4)  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.        (c)  Holders of conflicting inventory security interests to     be notified.--Subsection (b)(2) through (4) apply only if the     holder of the conflicting security interest had filed a     financing statement covering the same types of inventory:            (1)  if the purchase-money security interest is perfected        by filing, before the date of the filing; or            (2)  if the purchase-money security interest is        temporarily perfected without filing or possession under        section 9312(f) (relating to temporary perfection: goods or        documents made available to debtor), before the beginning of        the 20-day period thereunder.        (d)  Livestock purchase-money priority.--Subject to     subsection (e) and except as otherwise provided in subsection     (g), a perfected purchase-money security interest in livestock     which are farm products has priority over a conflicting security     interest in the same livestock; and, except as otherwise     provided in section 9327, a perfected security interest in their     identifiable proceeds and identifiable products in their     unmanufactured state also has priority, if:            (1)  the purchase-money security interest is perfected        when the debtor receives possession of the livestock;            (2)  the purchase-money secured party sends an        authenticated notification to the holder of the conflicting        security interest;            (3)  the holder of the conflicting security interest        receives the notification within six months before the debtor        receives possession of the livestock; and            (4)  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.        (e)  Holders of conflicting livestock security interests to     be notified.--Subsection (d)(2) through (4) apply only if the     holder of the conflicting security interest had filed a     financing statement covering the same types of livestock:            (1)  if the purchase-money security interest is perfected        by filing, before the date of the filing; or            (2)  if the purchase-money security interest is        temporarily perfected without filing or possession under        section 9312(f), before the beginning of the 20-day period        thereunder.        (f)  Software purchase-money priority.--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 section 9327, 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.        (g)  Conflicting purchase-money security interests.--If more     than one security interest qualifies for priority in the same     collateral under subsection (a), (b), (d) or (f):            (1)  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            (2)  in all other cases, section 9322(a) (relating to        general priority rules) applies to the qualifying security        interests.        Cross References.  Section 9324 is referred to in section     9325 of this title.