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| For purposes of subsection (f)(2) [Maine cite subsection 6, | | paragraph (b)], SP-1A and SP-1B should be treated like a single | | secured party. The collective security interest would rank equally | | with that of SP-2. Thus, the secured parties would share in the | | ratio of 3 (for SP-1A and SP-1B combined) to 5 (for SP-2). | | Applying this ratio to the entire value of the product, SP-1A and | | SP-1B in the aggregate would be entitled to $375 (i.e., 3/8 x | | $1000), and SP-2 would be entitled to $625 (i.e., 5/8 x $1000). |
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| | | SP-1A and SP-1B would share the $300 in accordance with their | | priority, as established under other rules. Inasmuch as SP-1A | | has first priority, it would receive $200, and SP-1B would | | receive $100. |
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| | | 7. Priority of Security Interests That Attach Other Than by | | Operation of This Section. Under subsection (e) [Maine cite | | subsection (5)], the normal priority rules determine the priority | | of a security interest that attaches to the product or mass other | | than by operation of this section. For example, assume that SP-1 | | has a perfected security interest in Debtor's existing and after- | | acquired baked goods, and SP-2 has a perfected security interest | | in Debtor's flour. When the flour is processed into cakes, | | subsections (c) and (d) [Maine cite subsections (3) and (4)] | | provide that SP-2 acquires a perfected security interest in the | | cakes. If SP-1 filed against the baked goods before SP-2 filed | | against the flour, then SP-1 will enjoy priority in the cakes. | | See Section 9-322 [Maine cite section 9-1322] (first-to-file-or | | perfect). But if SP-2 filed against the flour before SP-1 filed | | against the baked goods, then SP-2 will enjoy priority in the | | cakes to the extent of its security interest. |
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| | | §9-1337.__Priority of security interests in goods covered by |
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| | | If, while a security interest in goods is perfected by any | | method under the law of another jurisdiction, this State issues a | | certificate of title that does not show that the goods are | | subject to the security interest or contain a statement that they | | may be subject to security interests not shown on the | | certificate: |
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| | | (1)__A buyer of the goods, other than a person in the business | | of selling goods of that kind, takes free of the security | | interest if the buyer gives value and receives delivery of the | | goods after issuance of the certificate and without knowledge of | | the security interest; and |
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| | | (2)__The security interest is subordinate to a conflicting | | security interest in the goods that attaches, and is perfected |
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