LD 2245
pg. 262
Page 261 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 263 of 493
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LR 1087
Item 1

 
cite subsection (4)], the priority rules in subsection (e) [Maine
cite subsection (5)] override the priority given to a
construction mortgage under subsection (h) [Maine cite subsection
(8)].

 
The rule in subsection (e)(2) [Maine cite subsection (5),
paragraph (b)] is limited to readily removable replacements of
domestic appliances. It does not apply to original
installations. Moreover, it is limited to appliances that are
"consumer goods" (defined in Section 9-102 [Maine cite section 9-
1102]) in the hands of the debtor. The principal effect of the
rule is to make clear that a secured party financing occasional
replacements of domestic appliances in noncommercial,
owneroccupied contexts need not concern itself with real-property
descriptions or records; indeed, for a purchasemoney replacement
of consumer goods, perfection without any filing will be
possible. See Section 9-309(1) [Maine cite section 9-1309,
subsection (a)].

 
9. Priority in Fixtures: Judicial Liens. Subsection (e)(3)
[Maine cite subsection (5), paragraph (c)], which follows former
Section 9-313(4)(d), adopts a first-in-time rule applicable to
conflicts between a fixture security interest and a lien on the
real property obtained by legal or equitable proceedings. Such a
lien is subordinate to an earlier-perfected security interest,
regardless of the method by which the security interest was
perfected. Judgment creditors generally are not reliance
creditors who search real-property records. Accordingly, a
perfected fixture security interest takes priority over a
subsequent judgment lien or other lien obtained by legal or
equitable proceedings, even if no evidence of the security
interest appears in the relevant real-property records.
Subsection (e)(3) [Maine cite subsection (5), paragraph (c)] thus
protects a perfected fixture security interest from avoidance by
a trustee in bankruptcy under Bankruptcy Code Section 544(a),
regardless of the method of perfection.

 
10. Priority in Fixtures: Manufactured Homes. A
manufactured home may become a fixture. New subsection (e)(4)
[Maine cite subsection (5), paragraph (d)] contains a special
rule granting priority to certain security interests created in a
"manufactured home" as part of a "manufactured-home transaction"
(both defined in Section 9-102 [Maine cite section 9-1102]).
Under this rule, a security interest in a manufactured home that
becomes a fixture has priority over a conflicting interest of an
encumbrancer or owner of the real property if the security
interest is perfected under a certificate-of-title statute (see
Section 9-311 [Maine cite section 9-1311]). Subsection (e)(4)
[Maine cite subsection (5), paragraph (d)] is only one of the
priority rules applicable to security interests in a manufactured


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