1. The rules of priority stated in other sections of this Part and in the following sections shall govern when applicable: section 554.4210 with respect to the security interests of collecting banks in items being collected, accompanying documents and proceeds; section 554.9103 on security interests related to other jurisdictions; section 554.9114 on consignments; section 554.9115 on security interests in investment property.
2. A perfected security interest in crops for new value given to enable the debtor to produce the crops during the production season and given not more than three months before the crops become growing crops by planting or otherwise takes priority over an earlier perfected security interest to the extent that such earlier interest secures obligations due more than six months before the crops become growing crops by planting or otherwise, even though the person giving new value had knowledge of the earlier security interest.
3. A perfected purchase money security interest in inventory has priority over a conflicting security interest in the same inventory and also has priority in identifiable cash proceeds received on or before the delivery of the inventory to a buyer if
a. the purchase money security interest is perfected at the time the debtor receives possession of the inventory; and
b. the purchase money secured party gives notification in writing to the holder of the conflicting security interest if the holder had filed a financing statement covering the same types of inventory (1) before the date of the filing made by the purchase money secured party, or (2) before the beginning of the twenty-one-day period where the purchase money security interest is temporarily perfected without filing or possession (section 554.9304, subsection 5); and
c. the holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and
d. the notification states that the person giving the notice has or expects to acquire a purchase money security interest in inventory of the debtor, describing such inventory by item or type.
4. A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives possession of the collateral or within twenty days thereafter.
5. In all cases not governed by other rules stated in this section (including cases of purchase money security interests which do not qualify for the special priorities set forth in subsections 3 and 4 of this section), priority between conflicting security interests in the same collateral shall be determined according to the following rules:
a. Conflicting security interests rank according to priority in time of filing or perfection. Priority dates from the time a filing is first made covering the collateral or the time the security interest is first perfected, whichever is earlier, provided that there is no period thereafter when there is neither filing nor perfection.
b. So long as conflicting security interests are unperfected, the first to attach has priority.
6. For the purposes of subsection 5 a date of filing or perfection as to collateral is also a date of filing or perfection as to proceeds.
7. If future advances are made while a security interest is perfected by filing, the taking of possession, or under section 554.9115 or section 554.9116 on investment property, the security interest has the same priority for the purposes of subsection 5 or section 554.9115, subsection 5, with respect to the future advances as it does with respect to the first advance. If a commitment is made before or while the security interest is so perfected, the security interest has the same priority with respect to advances made pursuant thereto. In other cases a perfected security interest has priority from the date the advance is made.
[C58, 62, § 539.9; C66, 71, 73, 75, 77, 79, 81, § 554.9312]
89 Acts, ch 113, § 53; 96 Acts, ch 1138, § 77, 84
Referred to in § 15E.91, 16.26, 16A.9, 203.12A, 203C.12A, 554.9104, 554.9115, 554.9301, 554.9304
1996 amendments to subsections 1 and 7 take effect July 1, 1997; 96 Acts, ch 1138, § 84; for provisions governing the continued perfection of security interests that are perfected as of July 1, 1997, see 96 Acts, ch 1138, § 80, 84; for law prior to July 1, 1997, see Code 1995
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