| 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)]. |
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| | 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. |
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| | 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]. |
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| | 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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