Priority of purchase-money security interests.

1. General rule — purchase-money priority. Except as otherwise provided in subsection 7 , a perfected purchase-money security interest in goods other than inventory or livestock has priority over a conflicting security interest in the same goods, and, except as otherwise provided in section 554.9327 , a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within twenty days thereafter. 2. Inventory purchase-money priority. Subject to subsection 3 and except as otherwise provided in subsection 7 , a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in section 554.9330 , and, except as otherwise provided in section 554.9327 , also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if: a. the purchase-money security interest is perfected when the debtor receives possession of the inventory; b. the purchase-money secured party sends a signed notification to the holder of the conflicting security interest; c. the holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and d. the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory. 3. Holders of conflicting inventory security interests to be notified. Subsection 2 , paragraphs “b” through “d” , apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory: a. if the purchase-money security interest is perfected by filing, before the date of the filing; or b. if the purchase-money security interest is temporarily perfected without filing or possession under section 554.9312, subsection 6 , before the beginning of the twenty-day period thereunder. 4. Livestock purchase-money priority. Subject to subsection 5 and except as otherwise provided in subsection 7 , a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in section 554.9327 , a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if: a. the purchase-money security interest is perfected when the debtor receives possession of the livestock; b. the purchase-money secured party sends a signed notification to the holder of the conflicting security interest; c. the holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and d. the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock. 5. Holders of conflicting livestock security interests to be notified. Subsection 4 , paragraphs “b” through “d” , apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock: a. if the purchase-money security interest is perfected by filing, before the date of the filing; or b. if the purchase-money security interest is temporarily perfected without filing or possession under section 554.9312, subsection 6 , before the beginning of the twenty-day period thereunder. 6. Software purchase-money priority. Except as otherwise provided in subsection 7 , a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in section 554.9327 , a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section . 7. Conflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral under subsection 1, 2, 4, or 6 : a. a security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and b. in all other cases, section 554.9322, subsection 1 , applies to the qualifying security interests. 2000 Acts, ch 1149, §44, 187 ; 2024 Acts, ch 1023, §70, 71 Referred to in §554.9325