70A-9a-336 - Commingled goods.
70A-9a-336. Commingled goods.
(1) In this section, "commingled goods" means goods that are physically united withother goods in such a manner that their identity is lost in a product or mass.
(2) A security interest does not exist in commingled goods as such. However, a securityinterest may attach to a product or mass that results when goods become commingled goods.
(3) If collateral becomes commingled goods, a security interest attaches to the product ormass.
(4) If a security interest in collateral is perfected before the collateral becomescommingled goods, the security interest that attaches to the product or mass under Subsection (3)is perfected.
(5) Except as otherwise provided in Subsection (6), the other provisions of this partdetermine the priority of a security interest that attaches to the product or mass under Subsection(3).
(6) If more than one security interest attaches to the product or mass under Subsection(3), the following rules determine priority:
(a) A security interest that is perfected under Subsection (4) has priority over a securityinterest that is unperfected at the time the collateral becomes commingled goods.
(b) If more than one security interest is perfected under Subsection (4), the securityinterests rank equally in proportion to the value of the collateral at the time it became commingledgoods.
Enacted by Chapter 252, 2000 General Session