LD 2245
pg. 61
Page 60 of 493 An Act to Adopt the Model Revised Article 9 Secured Transactions Page 62 of 493
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LR 1087
Item 1

 
because S has a purchase-money security interest in Item-1, Item-
1 secures the price of (a "purchase-money obligation incurred
with respect to") Item-2 ("other inventory"), and Item-2 itself
was subject to a purchase-money security interest. Note that, to
the extent Item-1 secures the price of Item-2, S's security
interest in Item-1 would not be a purchase-money security
interest under subsection (b)(1) [Maine cite subsection (2),
paragraph (a)]. The security interest in Item-1 is a purchase-
money security interest under subsection (b)(1) [Maine cite
subsection (2), paragraph (a)] only to the extent that Item-1 is
"purchase-money collateral," i.e., only to the extent that Item-1
"secures a purchase-money obligation incurred with respect to
that collateral" (i.e., Item-1). See subsection (a)(1) [Maine
cite subsection (1), paragraph (a)].

 
5. Purchase-Money Security Interests in Goods and Software.
Subsections (b) and (c) [Maine cite subsections (2) and (3)]
limit purchase-money security interests to security interests in
goods, including fixtures, and software. Otherwise, no change in
meaning from former Section 9-107 is intended. The second
sentence of former Section 9-115(5)(f) made the purchase-money
priority rule (former Section 9-312(4)) inapplicable to
investment property. This section's limitation makes that
provision unnecessary.

 
Subsection (c) [Maine cite subsection (3)] describes the
limited circumstances under which a security interest in goods
may be accompanied by a purchase-money security interest in
software. The software must be acquired by the debtor in a
transaction integrated with the transaction in which the debtor
acquired the goods, and the debtor must acquire the software for
the principal purpose of using the software in the goods.
"Software" is defined in Section 9-102 [Maine cite section 9-
1102].

 
6. Consignments. Under former Section 9114, the priority of
the consignor's interest is similar to that of a purchase-money
security interest. Subsection (d) [Maine cite subsection (4)]
achieves this result more directly, by defining the interest of a
"consignor," defined in Section 9-102 [Maine cite section 9-
1102], to be a purchase-money security interest in inventory for
purposes of this Article. This drafting convention obviates any
need to set forth special priority rules applicable to the
interest of a consignor. Rather, the priority of the consignor's
interest as against the rights of lien creditors of the
consignee, competing secured parties, and purchasers of the goods
from the consignee can be determined by reference to the priority
rules generally applicable to inventory, such as Sections 9-317,
9-320, 9-322, and 9-324 [Maine cite sections 9-1317, 9-1320, 9-
1322 and 9-1324]. For other purposes,


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