554.9324 Priority of purchase-money security interests. 1. General rule — purchase-money priority. Except as otherwise provided in subsection 7, a perfected purchase-money security interest in goods other than inventory or livestockhas priority over a conflicting security interest in the same goods, and, except as otherwiseprovided in section 554.9327, a perfected security interest in its identifiable proceeds alsohas priority, if the purchase-money security interest is perfected when the debtor receivespossession of the collateral or within twenty days thereafter. 2. Inventory purchase-money priority. Subject to subsection 3 and except as otherwise provided in subsection 7, a perfected purchase-money security interest in inventory haspriority over a conflicting security interest in the same inventory, has priority over aconflicting security interest in chattel paper or an instrument constituting proceeds of theinventory and in proceeds of the chattel paper, if so provided in section 554.9330, and, exceptas otherwise provided in section 554.9327, also has priority in identifiable cash proceedsof the inventory to the extent the identifiable cash proceeds are received on or before 554.9330, and, exceptas otherwise provided in section 554.9327, also has priority in identifiable cash proceedsof the inventory to the extent the identifiable cash proceeds are received on or before thedelivery of the inventory to a buyer, if: a. the purchase-money security interest is perfected when the debtor receives possession of the inventory; b. the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest; 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 sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory. 3. Holders of conflicting inventory security interests to be notified. Subsection 2, paragraphs 'b' through 'd', apply only if the holder of the conflicting security interest hadfiled a financing statement covering the same types of inventory: a. if the purchase-money security interest is perfected by filing, before the date of the filing; or b. flicting security interest hadfiled a financing statement covering the same types of inventory: a. if the purchase-money security interest is perfected by filing, before the date of the filing; or b. if the purchase-money security interest is temporarily perfected without filing or possession under section 554.9312, subsection 6, before the beginning of the twenty-dayperiod thereunder. 4. Livestock purchase-money priority. Subject to subsection 5 and except as otherwise provided in subsection 7, a perfected purchase-money security interest in livestock thatare farm products has priority over a conflicting security interest in the same livestock,and, except as otherwise provided in section 554.9327, a perfected security interest in theiridentifiable proceeds and identifiable products in their unmanufactured states also haspriority, if: a. the purchase-money security interest is perfected when the debtor receives possession of the livestock; b. the purchase-money secured party sends an authenticated notification to the holder of the conflicting security interest; c. the holder of the conflicting security interest receives the notification within six months before the debtor receives uthenticated notification to the holder of the conflicting security interest; c. the holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and d. the 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. 5. Holders of conflicting livestock security interests to be notified. Subsection 4, paragraphs 'b' through 'd', apply only if the holder of the conflicting security interest hadfiled a financing statement covering the same types of livestock: a. if the purchase-money security interest is perfected by filing, before the date of the filing; or b. if the purchase-money security interest is temporarily perfected without filing or possession under section 554.9312, subsection 6, before the beginning of the twenty-dayperiod thereunder. 6. Software purchase-money priority. Except as otherwise provided in subsection 7, a perfected purchase-money security interest in software has priority over a conflictingsecurity interest in the same collateral, and, except as otherwise xcept as otherwise provided in subsection 7, a perfected purchase-money security interest in software has priority over a conflictingsecurity interest in the same collateral, and, except as otherwise provided in section Sat Dec 23 11:01:56 2023 Iowa Code 2024, Section 554.9324 (27, 0) §554.9324, UNIFORM COMMERCIAL CODE 2 554.9327, a perfected security interest in its identifiable proceeds also has priority, to theextent that the purchase-money security interest in the goods in which the software wasacquired for use has priority in the goods and proceeds of the goods under this section. 7. Conflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral under subsection 1, 2, 4, or 6: a. a 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 givento enable the debtor to acquire rights in or the use of collateral; and b. in all other cases, section 554.9322, subsection 1, applies to the qualifying security interests. on incurred for value givento enable the debtor to acquire rights in or the use of collateral; and b. in all other cases, section 554.9322, subsection 1, applies to the qualifying security interests. 2000 Acts, ch 1149, §44, 187Referred to in §554.9325 Sat Dec 23 11:01:56 2023 Iowa Code 2024, Section 554.9324 (27, 0)
Iowa Legal Code