(a)__That secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business;

(b)__That is created by statute or rule of law in favor of the person; and

(c)__Whose effectiveness depends on the person's possession of the goods.

(2)__A possessory lien on goods has priority over a security interest in the goods unless the lien is created by a statute that expressly provides otherwise.

Official Comment

1. Source. Former Section 9-310.

2. "Possessory Liens." This section governs the relative priority of security interests arising under this Article and "possessory liens," i.e., common-law and statutory liens whose effectiveness depends on the lienor's possession of goods with respect to which the lienor provided services or furnished materials in the ordinary course of its business. As under former Section 9-310, the possessory lien has priority over a security interest unless the possessory lien is created by a statute that expressly provides otherwise. If the statute creating the possessory lien is silent as to its priority relative to a security interest, this section provides a rule of interpretation that the possessory lien takes priority, even if the statute has been construed judicially to make the possessory lien subordinate.

§9-1334.__Priority of security interests in fixtures and crops

(1)__A security interest under this Article may be created in goods that are fixtures or may continue in goods that become fixtures.__A security interest does not exist under this Article in ordinary building materials incorporated into an improvement on land.

(2)__This Article does not prevent creation of an encumbrance upon fixtures under real property law.