1. A security interest in goods which attaches before they are installed in or affixed to other goods takes priority as to the goods installed or affixed (called in this section "accessions") over the claims of all persons to the whole except as stated in subsection 3 and subject to section 554.9315, subsection 1.
2. A security interest which attaches to goods after they become part of a whole is valid against all persons subsequently acquiring interests in the whole except as stated in subsection 3 but is invalid against any person with an interest in the whole at the time the security interest attaches to the goods who has not in writing consented to the security interest or disclaimed an interest in the goods as part of the whole.
3. The security interests described in subsections 1 and 2 do not take priority over
a. a subsequent purchaser for value of any interest in the whole; or
b. a creditor with a lien on the whole subsequently obtained by judicial proceedings; or
c. a creditor with a prior perfected security interest in the whole to the extent that the creditor makes subsequent advances; if the subsequent purchase is made, the lien by judicial proceedings obtained or the subsequent advance under the prior perfected security interest is made or contracted for without knowledge of the security interest and before it is perfected. A purchaser of the whole at a foreclosure sale other than the holder of a perfected security interest purchasing at that holder's own foreclosure sale is a subsequent purchaser within this section.
4. When under subsections 1 or 2 and 3 a secured party has an interest in accessions which has priority over the claims of all persons who have interests in the whole, that person may on default subject to the provisions of Part 5 remove that person's collateral from the whole but that person must reimburse any encumbrancer or owner of the whole who is not the debtor and who has not otherwise agreed for the cost of repair of any physical injury but not for any diminution in value of the whole caused by the absence of the goods removed or by any necessity for replacing them. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate security for the performance of this obligation.
[C66, 71, 73, 75, 77, 79, 81, § 554.9314]
Referred to in § 15E.91, 16.26, 16A.9, 554.9204, 554.9315
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Last update: Thu Mar 18 15:00:31 CST 1999
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