| | | entitled to $225 (i.e., 3/8 x $600), and SP-2 is entitled to $375 | | (i.e., 5/8 x $600). Debtor receives nothing. If, however, as in | | Example 2, SP-1 is owed only $200, then SP-2 receives $400. |
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| | | The results in the foregoing examples remain the same, | | regardless of whether SP-1 or SP-2 (or each) has a purchase-money | | security interest. |
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| | | 5. Perfection: Unperfected Security Interests. The rule | | explained in the preceding Comment applies only when both | | security interests in original collateral are perfected when the | | goods become commingled goods. If a security interest in | | original collateral is unperfected at the time the collateral | | becomes commingled goods, subsection (f)(1) [Maine cite | | subsection (6), paragraph (a)] applies. |
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| | | Example 4: SP-1 has a perfected security interest in the | | debtor's eggs, and SP-2 has an unperfected security interest in | | the debtor's flour. Debtor uses the flour and eggs to make | | cakes. Under subsection (c) [Maine cite subsection (3)], both | | security interests attach to the cakes. But since SP-1's | | security interest was perfected at the time of commingling and | | SP-2's was not, only SP-1's security interest in the cakes is | | perfected. See subsection (d) [Maine cite subsection (4)]. | | Under subsection (f)(1) [Maine cite subsection (6), paragraph | | (a)] and Section 9-322(a)(2) [Maine cite section 9-1322, | | subsection (1), paragraph (b)], SP-1's perfected security | | interest has priority over SP-2's unperfected security interest. |
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| | | If both security interests are unperfected, the rule of Section | | 9-322(a)(3) [Maine cite section 9-1322, subsection (1), paragraph | | (c)] would apply. |
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| | | 6. Multiple Security Interests. On occasion, a single input | | may be encumbered by more than one security interest. In those | | cases, the multiple secured parties should be treated like a | | single secured party for purposes of determining their collective | | share under subsection (f)(2) [Maine cite subsection (6), | | paragraph (b)]. The normal priority rules would determine how | | that share would be allocated between them. Consider the | | following example, which is a variation on Example 1 above: |
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| | | Example 5: SP-1A has a perfected, first-priority security | | interest in Debtor's eggs. SP-1B has a perfected, second- | | priority security interest in the same collateral. The eggs have | | a value of $300. Debtor owes $200 to SP-1A and $200 to SP-1B. | | SP-2 has a perfected security interest in Debtor's flour, which | | has a value of $500 and secures a debt of $600. Debtor uses the | | flour and eggs to make cakes, which have a value of $1000. |
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