Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section sets out when a perfected purchase money security interest that is granted by a grantor in collateral or its proceeds has priority over a perfected security interest that is granted by the same grantor in the same collateral, but that is not a purchase money security interest.
Note: This section is subject to section 57 (perfection by control).
Inventory
(2) The purchase money security interest has priority if:
(a) the purchase money security interest is in inventory or its proceeds; and
(b) the purchase money security interest is perfected by registration at the time:
(i) for inventory that is goods--the grantor, or another person at the request of the grantor, obtains possession of the inventory; or
(ii) for any other kind of inventory--the purchase money security interest attaches to the inventory; and
(c) the registration that perfects the purchase money security interest states, in accordance with item 7 of the table in section 153, that the interest is a purchase money security interest.
Note: This subsection is subject to sections 64 (non - purchase money security interest in accounts) and 71 (chattel paper).
Personal property other than inventory
(3) The purchase money security interest has priority if:
(a) the interest is in personal property, or its proceeds, other than inventory; and
(b) the purchase money security interest is perfected by registration before the end of 15 business days after whichever of the following days applies:
(i) for goods--the day the grantor, or another person at the request of the grantor, obtains possession of the property;
(ii) for any other property--the day the interest attaches to the property; and
(c) the registration that perfects the purchase money security interest states, in accordance with item 7 of the table in section 153, that the interest is a purchase money security interest.
Note: The period mentioned in paragraph (b) may be extended by a court under section 293.