§ 9-336. COMMINGLED GOODS.

(a) ["Commingled goods."]

In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.

(b) [No security interest in commingled goods as such.]

A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.

(c) [Attachment of security interest to product or mass.]

If collateral becomes commingled goods , a security interest attaches to the product or mass.

(d) [Perfection of security interest.]

If a security interest in collateral is perfected before the collateral becomes commingled goods , the security interest that attaches to the product or mass under subsection (c) is perfected.

(e) [Priority of security interest.]

Except as otherwise provided in subsection (f), the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection (c).

(f) [Conflicting security interests in product or mass]

If more than one security interest attaches to the product or mass under subsection (c), the following rules determine priority:

(1) A security interest that is perfected under subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods .

(2) If more than one security interest is perfected under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.