8. Priority in Proceeds: General. When the purchase-money secured party has priority over another secured party, the question arises whether this priority extends to the proceeds of the original collateral. Subsections (a), (d) and (f) [Maine cite subsections (1), (4) and (6)] give an affirmative answer, but only as to proceeds in which the security interest is perfected (see Section 9-315 [Maine cite section 9-1315]). Although this qualification did not appear in former Section 9- 312(4), it was implicit in that provision.

In the case of inventory collateral under subsection (b) [Maine cite subsection (2)], where financing frequently is based on the resulting accounts, chattel paper, or other proceeds, the special priority of the purchase-money secured interest carries over into only certain types of proceeds. As under former Section 9-312(3), the purchase-money priority in inventory under subsection (b) [Maine cite subsection (2)] carries over into identifiable cash proceeds (defined in Section 9-102 [Maine cite section 9-1102]) received on or before the delivery of the inventory to a buyer.

As a general matter, also like former Section 9-312(3), the purchase-money priority in inventory does not carry over into proceeds consisting of accounts or chattel paper. Many parties financing inventory are quite content to protect their first- priority security interest in the inventory itself. They realize that when the inventory is sold, someone else will be financing the resulting receivables (accounts or chattel paper), and the priority for inventory will not run forward to the receivables constituting the proceeds. Indeed, the cash supplied by the receivables financer often will be used to pay the inventory financing. In some situations, the party financing the inventory on a purchase-money basis makes contractual arrangements that the proceeds of receivables financing by another be devoted to paying off the inventory security interest.

However, the purchase-money priority in inventory does carry over to proceeds consisting of chattel paper and its proceeds (and also to instruments) to the extent provided in Section 9-330 [Maine cite section 9-1330]. Under Section 9-330(e) [Maine cite section 9-1330, subsection (5)], the holder of a purchase-money security interest in inventory is deemed to give new value for proceeds consisting of chattel paper. Taken together, Sections 9-324(b) [Maine cite section 9-1324, subsection (2)] and 9-330(e) [Maine cite section 9-1330, subsection (5)] enable a purchase- money inventory secured party to obtain priority in