(a)__In accordance with any reasonable method of application to which the parties agree;

(b)__In the absence of the parties' agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or

(c)__In the absence of an agreement to a reasonable method and a timely manifestation of the obligor's intention, in the following order:

(i)__To obligations that are not secured; and

(ii)__If more than one obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.

(6)__In a transaction other than a consumer-goods transaction, a purchase-money security interest does not lose its status as such, even if:

(a)__The purchase-money collateral also secures an obligation that is not a purchase-money obligation;

(b)__Collateral that is not purchase-money collateral also secures the purchase-money obligation; or

(c)__The purchase-money obligation has been renewed, refinanced, consolidated or restructured.

(7)__In a transaction other than a consumer-goods transaction, a secured party claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest.

(8)__The limitation of the rules in subsections (5), (6) and (7) to transactions other than consumer-goods transactions is intended to leave to the court the determination of the proper rules in consumer-goods transactions.__The court may not infer from that limitation the nature of the proper rule in consumer- goods transactions and may continue to apply established approaches.

Official Comment

1. Source. Former Section 9107.