8.9A-322 - A-322. Priorities among conflicting security interests in and agricultural liens on same collateral.
§ 8.9A-322. Priorities among conflicting security interests in andagricultural liens on same collateral.
(a) General priority rules. Except as otherwise provided in this section,priority among conflicting security interests and agricultural liens in thesame collateral is determined according to the following rules:
(1) Conflicting perfected security interests and agricultural liens rankaccording to priority in time of filing or perfection. Priority dates fromthe earlier of the time a filing covering the collateral is first made or thesecurity interest or agricultural lien is first perfected, if there is noperiod thereafter when there is neither filing nor perfection.
(2) A perfected security interest or agricultural lien has priority over aconflicting unperfected security interest or agricultural lien.
(3) The first security interest or agricultural lien to attach or becomeeffective has priority if conflicting security interests and agriculturalliens are unperfected.
(b) Time of perfection; proceeds and supporting obligations. For the purposesof subsection (a) (1):
(1) the time of filing or perfection as to a security interest in collateralis also the time of filing or perfection as to a security interest inproceeds; and
(2) the time of filing or perfection as to a security interest in collateralsupported by a supporting obligation is also the time of filing or perfectionas to a security interest in the supporting obligation.
(c) Special priority rules: proceeds and supporting obligations. Except asotherwise provided in subsection (f), a security interest in collateral whichqualifies for priority over a conflicting security interest under §§8.9A-327, 8.9A-328, 8.9A-329, 8.9A-330 or § 8.9A-331 also has priority over aconflicting security interest in:
(1) any supporting obligation for the collateral; and
(2) proceeds of the collateral if:
(A) the security interest in proceeds is perfected;
(B) the proceeds are cash proceeds or of the same type as the collateral; and
(C) in the case of proceeds that are proceeds of proceeds, all interveningproceeds are cash proceeds, proceeds of the same type as the collateral, oran account relating to the collateral.
(d) First-to-file priority rule for certain collateral. Subject to subsection(e) and except as otherwise provided in subsection (f), if a securityinterest in chattel paper, deposit accounts, negotiable documents,instruments, investment property, or letter-of-credit rights is perfected bya method other than filing, conflicting perfected security interests inproceeds of the collateral rank according to priority in time of filing.
(e) Applicability of subsection (d). Subsection (d) applies only if theproceeds of the collateral are not cash proceeds, chattel paper, negotiabledocuments, instruments, investment property, or letter-of-credit rights.
(f) Limitations on subsections (a) through (e). Subsections (a) through (e)are subject to:
(1) subsection (g) and the other provisions of this part;
(2) § 8.4-210 with respect to a security interest of a collecting bank;
(3) § 8.5A-118 with respect to a security interest of an issuer or nominatedperson; and
(4) § 8.9A-110 with respect to a security interest arising under Title 8.2 orTitle 8.2A.
(g) Priority under agricultural lien statute. A perfected agricultural lienon collateral has priority over a conflicting security interest in oragricultural lien on the same collateral if the statute creating theagricultural lien so provides.
(Code 1950, § 43-27; 1964, c. 219, § 8.9-312; 1966, c. 557; 1973, c. 509;1983, c. 204; 1984, c. 613; 1996, c. 216; 2000, c. 1007.)