LD 2245
pg. 265
Page 264 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 266 of 493
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LR 1087
Item 1

 
addresses the case of collateral that changes form without the
addition of other goods.

 
3. "Accession" vs. "Other Goods." This section distinguishes
among the "accession," the "other goods," and the "whole." The
last term refers to the combination of the "accession" and the
"other goods." If one person's collateral becomes physically
united with another person's collateral, each is an "accession."

 
Example 1: SP-1 holds a security interest in the debtor's
tractors (which are not subject to a certificate-of-title
statute), and SP-2 holds a security interest in a particular
tractor engine. The engine is installed in a tractor. From the
perspective of SP-1, the tractor becomes an "accession" and the
engine is the "other goods." From the perspective of SP-2, the
engine is the "accession" and the tractor is the "other goods."
The completed tractor-tractor cum engine-constitutes the "whole."

 
4. Scope. This section governs only a few issues concerning
accessions. Subsection (a) [Maine cite subsection (1)] contains
rules governing continuation of a security interest in an
accession. Subsection (b) [Maine cite subsection (2)] contains a
rule governing continued perfection of a security interest in
goods that become an accession. Subsection (d) [Maine cite
subsection (4)] contains a special priority rule governing
accessions that become part of a whole covered by a certificate
of title. Subsections (e) and (f) [Maine cite subsections (5)
and (6)] govern enforcement of a security interest in an
accession.

 
5. Matters Left to Other Provisions of This Article:
Attachment and Perfection. Other provisions of this Article
often govern accession-related issues. For example, this section
does not address whether a secured party acquires a security
interest in the whole if its collateral becomes an accession.
Normally this will turn on the description of the collateral in
the security agreement.

 
Example 2: Debtor owns a computer subject to a perfected
security interest in favor of SP-1. Debtor acquires memory and
installs it in the computer. Whether SP-1's security interest
attaches to the memory depends on whether the security agreement
covers it.

 
Similarly, this section does not determine whether perfection
against collateral that becomes an accession is effective to
perfect a security interest in the whole. Other provisions of
this Article, including the requirements for


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