1999 Minnesota Statutes

     336.9-314 Accessions.  

    (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 336.9-315(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 the 
 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, the 
 secured party may on default subject to the provisions of part 5 
 remove collateral from the whole but the secured party 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.  

    HIST: 1965 c 811 s 336.9-314; 1986 c 444