Missouri Revised Statutes













Chapter 400

Uniform Commercial Code

←400.09-333

Section 400.9-334.1

400.09-335→

August 28, 2015

Priority of security interests in fixtures and crops.

400.9-334. (a) A security interest under this article may be created in

goods that are fixtures or may continue in goods that become fixtures. A

security interest does not exist under this article in ordinary building

materials incorporated into an improvement on land.



(b) This article does not prevent creation of an encumbrance upon

fixtures under real property law.



(c) In cases not governed by subsections (d) through (h), a security

interest in fixtures is subordinate to a conflicting interest of an

encumbrancer or owner of the related real property other than the debtor.



(d) Except as otherwise provided in subsection (h), a perfected security

interest in fixtures has priority over a conflicting interest of an

encumbrancer or owner of the real property if the debtor has an interest of

record in or is in possession of the real property and:



(1) The security interest is a purchase-money security interest;



(2) The interest of the encumbrancer or owner arises before the goods

become fixtures; and



(3) The security interest is perfected by a fixture filing before the

goods become fixtures or within twenty days thereafter.



(e) A perfected security interest in fixtures has priority over a

conflicting interest of an encumbrancer or owner of the real property if:



(1) The debtor has an interest of record in the real property or is in

possession of the real property and the security interest:



(A) Is perfected by a fixture filing before the interest of the

encumbrancer or owner is of record; and



(B) Has priority over any conflicting interest of a predecessor in title

of the encumbrancer or owner;



(2) Before the goods become fixtures, the security interest is perfected

by any method permitted by this article and the fixtures are readily

removable:



(A) Factory or office machines;



(B) Equipment that is not primarily used or leased for use in the

operation of the real property; or



(C) Replacements of domestic appliances that are consumer goods;



(3) The conflicting interest is a lien on the real property obtained by

legal or equitable proceedings after the security interest was perfected by

any method permitted by this article; or



(4) The security interest is:



(A) Created in a manufactured home in a manufactured-home transaction;

and



(B) Perfected pursuant to a statute described in section 400.9-311(a)(2).



(f) A security interest in fixtures, whether or not perfected, has

priority over a conflicting interest of an encumbrancer or owner of the real

property if:



(1) The encumbrancer or owner has, in an authenticated record, consented

to the security interest or disclaimed an interest in the goods as fixtures;

or



(2) The debtor has a right to remove the goods as against the

encumbrancer or owner.



(g) The priority of the security interest under subsection (f) continues

for a reasonable time if the debtor's right to remove the goods as against

the encumbrancer or owner terminates.



(h) A mortgage is a construction mortgage to the extent that it secures

an obligation incurred for the construction of an improvement on land,

including the acquisition cost of the land, if a recorded record of the

mortgage so indicates. Except as otherwise provided in subsections (e) and

(f), a security interest in fixtures is subordinate to a construction mortgage

if a record of the mortgage is recorded before the goods become fixtures and

the goods become fixtures before the completion of the construction. A

mortgage has this priority to the same extent as a construction mortgage to

the extent that it is given to refinance a construction mortgage.



(i) A perfected security interest in crops growing on real property has

priority over a conflicting interest of an encumbrancer or owner of the real

property if the debtor has an interest of record in or is in possession of

the real property.



(j) Subsection (i) prevails over any inconsistent provisions of other

statutes.



(L. 2001 S.B. 288)



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