§6A-9-334  Priority of security interests in fixtures and crops. –

Link to law: http://webserver.rilin.state.ri.us/Statutes/TITLE6A/6A-9/6A-9-334.HTM
Published: 2015

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TITLE 6A

Uniform Commercial Code

CHAPTER 6A-9

Secured Transactions

PART 6A-9-301

Perfection and Priority

SECTION 6A-9-334



   § 6A-9-334  Priority of security interests

in fixtures and crops. –

(a) Security interest in fixtures under this chapter. A security

interest under this chapter may be created in goods that are fixtures or may

continue in goods that become fixtures. A security interest does not exist

under this chapter in ordinary building materials incorporated into an

improvement on land.



   (b) Security interest in fixtures under real-property

law. This chapter does not prevent creation of an encumbrance upon fixtures

under real property law.



   (c) General rule: subordination of security interest in

fixtures. 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) Fixtures purchase-money priority. 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 20 days thereafter.



   (e) Priority of security interest in fixtures over

interests in real property. 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:



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

the encumbrancer or owner is of record; and



   (ii) 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 chapter and the fixtures are

readily removable:



   (i) Factory or office machines;



   (ii) Equipment that is not primarily used or leased for use

in the operation of the real property; or



   (iii) 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 chapter; or



   (4) The security interest is:



   (i) Created in a manufactured home in a manufactured-home

transaction; and



   (ii) Perfected pursuant to a statute described in §

6A-9-311(a)(2).



   (f) Priority based on consent, disclaimer, or right to

remove. 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) Continuation of paragraph (f)(2) priority. The

priority of the security interest under paragraph (f)(2) continues for a

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

encumbrancer or owner terminates.



   (h) Priority of construction mortgage. 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) Priority of security interest in crops. 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.



History of Section.

(P.L. 2000, ch. 182, § 6; P.L. 2000, ch. 420, § 6.)