SECTION 679.324. Priority of purchase-money security interests.
Latest version.
1(1) 2Except 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 s. 39679.327, 40a 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 within 20 days thereafter.
71(2) 72Subject 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 s. 132679.330, 133and, except as otherwise provided in s. 140679.327, 141also 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:
172(a) 173The purchase-money security interest is perfected when the debtor receives possession of the inventory;
187(b) 188The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
204(c) 205The holder of the conflicting security interest receives the notification within 5 years before the debtor receives possession of the inventory; and
227(d) 228The 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.
255(3) 256Paragraphs (2)(b), (c), and (d) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:
282(a) 283If the purchase-money security interest is perfected by filing, before the date of the filing; or
299(b) 300If the purchase-money security interest is temporarily perfected without filing or possession under s. 314679.3121(6), 315before the beginning of the 20-day period thereunder.
323(4) 324Subject 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 s. 365679.327, 366a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:
385(a) 386The purchase-money security interest is perfected when the debtor receives possession of the livestock;
400(b) 401The purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest;
417(c) 418The holder of the conflicting security interest receives the notification within 6 months before the debtor receives possession of the livestock; and
440(d) 441The 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.
468(5) 469Paragraphs (4)(b), (c), and (d) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:
495(a) 496If the purchase-money security interest is perfected by filing, before the date of the filing; or
512(b) 513If the purchase-money security interest is temporarily perfected without filing or possession under s. 527679.3121(6), 528before the beginning of the 20-day period thereunder.
536(6) 537Except 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 s. 569679.327, 570a 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.
613(7) 614If more than one security interest qualifies for priority in the same collateral under subsection (1), subsection (2), subsection (4), or subsection (6):
637(a) 638A 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
682(b) 683In all other cases, s. 688679.322(1)689applies to the qualifying security interests.
