1999 Minnesota Statutes

     336.9-312 Priorities among conflicting security 
  interests in the same collateral. 

    (1) The rules of priority stated in other sections of this 
 part and in the following sections shall govern when 
 applicable:  section 336.4-210 with respect to the security 
 interests of collecting banks in items being collected, 
 accompanying documents and proceeds; section 336.9-103 on 
 security interests related to other jurisdictions; section 
 336.9-114 on consignments; section 336.9-115 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 (i) before the date of the filing made by the 
 purchase money secured party, or (ii) before the beginning of 
 the 21 day period where the purchase money security interest is 
 temporarily perfected without filing or possession (subsection 
 (5) of section 336.9-304); 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 20 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 336.9-115 or 336.9-116 on investment property, the 
 security interest has the same priority for the purposes of 
 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. 

    HIST: 1965 c 811 s 336.9-312; 1976 c 135 s 21; 1978 c 695 s 
 54; 1983 c 50 s 4; 1992 c 565 s 113; 1995 c 194 art 2 s 13