Secured Transactions Act · 2022 Revised Edition · Part 6
33. Priority of purchase money security interests in goods that continue in processed or commingled goods
Official textFrom Attorney General's Chambers, unchanged
Notwithstanding section 32, a perfected purchase money security interest in goods that continues in a product or mass shall have priority over —
purchase money security interest
“purchase money security interest” means — (a) a security interest taken in collateral by a seller that secures the obligation to pay any unpaid portion of the purchase price of the collateral; (b) a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights; (c) the interest of a financial lessor or a lessor of goods under a lease for a term of more than one year; or (d) the interest of a consignor who delivers goods to a consignee under a commercial consignment, but does not include a transaction of sale and lease back to the seller;
Secured Transactions
a non-purchase money security interest in the goods that continues in the product or mass; and
goods
“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;
a non-purchase money security interest in the product or mass given by the same debtor.
Priority of security interests in transferred collateral
collateral
“collateral” means personal property that is subject to a security interest;
Terms defined in s 3
collateral
Defined · s 3“collateral” means personal property that is subject to a security interest;
goods
Defined · s 3“goods” means tangible personal property and include farm products, inventory, equipment, consumer goods, trees that have been severed, and petroleum or minerals that have been extracted, but does not include chattel paper, document of title, negotiable instrument, investment security or money;
purchase
Defined · s 3“purchase” means taking by sale, lease, discount, assignment, negotiation, mortgage, pledge, lien, issue, reissue, gift or any other consensual transaction that creates an interest in personal property;
purchase money security interest
Defined · s 3“purchase money security interest” means — (a) a security interest taken in collateral by a seller that secures the obligation to pay any unpaid portion of the purchase price of the collateral; (b) a security interest taken in collateral by a person who gives value for the purpose of enabling the debtor to acquire rights in the collateral, to the extent that the value is applied to acquire those rights; (c) the interest of a financial lessor or a lessor of goods under a lease for a term of more than one year; or (d) the interest of a consignor who delivers goods to a consignee under a commercial consignment, but does not include a transaction of sale and lease back to the seller;
Part
Special Priority Rules
Part
Registration
Part
Enforcement of Security Interests
Part