Maine Revised Statutes Title 11 Sec. 9-1324 – Priority of purchase-money security interests
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(1). Except as otherwise provided in subsection (7), 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 9?1327, 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:
(a). In the case of goods covered by Title 29?A, chapter 7, within 30 days thereafter; or [PL 2003, c. 652, Pt. A, §2 (NEW); PL 2003, c. 652, Pt. A, §7 (AFF).]
(b). In all other cases, within 20 days thereafter. [PL 2003, c. 652, Pt. A, §2 (NEW); PL 2003, c. 652, Pt. A, §7 (AFF).]
[PL 2003, c. 652, Pt. A, §2 (AMD); PL 2003, c. 652, Pt. A, §7 (AFF).]
Terms Used In Maine Revised Statutes Title 11 Sec. 9-1324
- Cash proceeds: means proceeds that are money, checks, deposit accounts or the like. See Maine Revised Statutes Title 11 Sec. 9-1102
- Chattel paper: means a record or records that evidence both a monetary obligation and a security interest in specific goods, a security interest in specific goods and license of software used in the goods, a lease of specific goods or a lease of specific goods and license of software used in the goods. See Maine Revised Statutes Title 11 Sec. 9-1102
- Collateral: includes :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Debtor: means :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Farm products: means goods, other than standing timber, with respect to which the debtor is engaged in a farming operation and that are:
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Financing statement: means a record or records composed of an initial financing statement and any filed record relating to the initial financing statement. See Maine Revised Statutes Title 11 Sec. 9-1102 Goods: includes :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Instrument: means a negotiable instrument or any other writing that evidences a right to the payment of a monetary obligation, is not itself a security agreement or lease and is of a type that in the ordinary course of business is transferred by delivery with any necessary indorsement or assignment. See Maine Revised Statutes Title 11 Sec. 9-1102 Inventory: means goods, other than farm products, that:
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period. Proceeds: means the following property:
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Secured party: means :
(a). See Maine Revised Statutes Title 11 Sec. 9-1102Software: means a computer program and any supporting information provided in connection with a transaction relating to the program. See Maine Revised Statutes Title 11 Sec. 9-1102
(2). Subject to subsection (3) and except as otherwise provided in subsection (7), 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 9?1330, and, except as otherwise provided in section 9?1327, 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:
(a). The purchase-money security interest is perfected when the debtor receives possession of the inventory; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c). The holder of the conflicting security interest receives the notification within 5 years before the debtor receives possession of the inventory; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(d). 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. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(3). Subsection (2), paragraphs (b) to (d) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:
(a). If the purchase-money security interest is perfected by filing, before the date of the filing; or [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). If the purchase-money security interest is temporarily perfected without filing or possession under section 9?1312, subsection (6) before the beginning of the 20-day period thereunder. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(4). Subject to subsection (5) and except as otherwise provided in subsection (7), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in section 9?1327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:
(a). The purchase-money security interest is perfected when the debtor receives possession of the livestock; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c). The holder of the conflicting security interest receives the notification within 6 months before the debtor receives possession of the livestock; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(d). 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. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(5). Subsection (4), paragraphs (b) to (d) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:
(a). If the purchase-money security interest is perfected by filing, before the date of the filing; or [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). If the purchase-money security interest is temporarily perfected without filing or possession under section 9?1312, subsection (6), before the beginning of the 20-day period thereunder. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(6). Except as otherwise provided in subsection (7), 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 9?1327, 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.
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(7). If more than one security interest qualifies for priority in the same collateral under subsection (1), (2), (4) or (6):
(a). 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 [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). In all other cases, section 9?1322, subsection (1) applies to the qualifying security interests. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
SECTION HISTORY
PL 1999, c. 699, §A2 (NEW). PL 1999, c. 699, §A4 (AFF). PL 2003, c. 652, §A2 (AMD). PL 2003, c. 652, §A7 (AFF).