1999 Minnesota Statutes

     336.9-315 Priority when goods are commingled or 
  processed.  

    (1) If a security interest in goods was perfected and 
 subsequently the goods or a part thereof have become part of a 
 product or mass, the security interest continues in the product 
 or mass if 

    (a) the goods are so manufactured, processed, assembled or 
 commingled that their identity is lost in the product or mass; 
 or 

    (b) a financing statement covering the original goods also 
 covers the product into which the goods have been manufactured, 
 processed, or assembled. 

    In a case to which paragraph (b) applies, no separate 
 security interest in that part of the original goods which has 
 been manufactured, processed, or assembled into the product may 
 be claimed under section 336.9-314.  

    (2) When under subsection (1) more than one security 
 interest attaches to the product or mass, they rank equally 
 according to the ratio that the cost of the goods to which each 
 interest originally attached bears to the cost of the total 
 product or mass.  

    HIST: 1965 c 811 s 336.9-315