(a)  General priority rules.  Except as otherwise provided in this Section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:

(1)  Conflicting perfected security interests and agricultural liens in the same collateral rank according to priority in time of filing or perfection.  Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.

(2)  A perfected security interest or agricultural lien has priority over a conflicting unperfected security interest or agricultural lien in the same collateral.

(3)  The first security interest or agricultural lien to attach or become effective has priority if conflicting security interests and  agricultural liens are unperfected.

(b)  Time of perfection:  proceeds and supporting obligations. For the purposes of Subsection (a)(1):

(1)  the time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and

(2)  the time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.

(c)  Special priority rules:  proceeds and supporting obligations.  Except as otherwise provided in Subsection (f), a security interest in collateral which qualifies for priority over a conflicting security interest under La. Rev. Stat. 10:9-327, 9-328, 9-329, 9-329.1, 9-330, or 9-331 also has priority over a conflicting 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 intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an 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 security interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property, or letter-of-credit rights is perfected by a method other than filing, conflicting perfected security interests in proceeds of the collateral rank according to priority in time of filing.

(e)  Applicability of Subsection (d).  Subsection (d) applies only if the proceeds of the collateral are not cash proceeds, chattel paper, negotiable documents, instruments, investment property, or letter-of-credit rights.

(f)  Limitations on Subsections (a) through (e).  Subsections (a) through (e) are subject to all of the following:

(1)  the other provisions of this Part;

(2)  La. Rev. Stat. 10:4-210 with respect to a security interest of a collecting bank;

(3)  La. Rev. Stat. 10:5-118 with respect to a security interest of an issuer or nominated person;

(4)  [Reserved.]

(5)  La. Rev. Stat. 9:5551 with respect to collateral mortgages.

(6)  Repealed by Acts 2010, No. 378, §4.

(g)  Priority of agricultural liens and security interests affecting crops.  Agricultural liens and security interests affecting crops and their proceeds rank according to the following order of priority:

(1)  Agricultural liens in favor of agricultural laborers, with equal rank among themselves.

(2)  Perfected agricultural liens securing payment of rent due to a person that has leased real property on which the crops are growing or from which they were produced.

(3)  Other perfected agricultural liens and perfected security interests, with priority among themselves as provided in this Section and Part.

(4)  Unperfected agricultural liens securing payment of rent due to a person who has leased real property on which the crops are growing or from which they were produced.

(5)  Other unperfected agricultural liens and unperfected security interests, with priority among themselves in the order in which they become effective or attach.

(h)  Liens.  A security interest has priority over a conflicting lien, other than an agricultural lien, in the same collateral except as otherwise provided in this Chapter or except to the extent the lien is created by a statute that expressly provides that the lien has priority over the security interest.

Acts 2001, No. 128, §1, eff. July 1, 2001; Acts 2010, No. 378, §§3, 4.