Commingled goods.

1. Commingled goods. In this section , “commingled goods” means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass. 2. No security interest in commingled goods as such. A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods. 3. Attachment of security interest to product or mass. If collateral becomes commingled goods, a security interest attaches to the product or mass. 4. Perfection of security interest. If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection 3 is perfected. 5. Priority of security interest. Except as otherwise provided in subsection 6 , the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection 3 . 6. Conflicting security interests in product or mass. If more than one security interest attaches to the product or mass under subsection 3 , the following rules determine priority: a. A security interest that is perfected under subsection 4 has priority over a security interest that is unperfected at the time the collateral becomes commingled goods. b. If more than one security interest is perfected under subsection 4 , the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods. 2000 Acts, ch 1149, §56, 187 Referred to in §554.9204 , 554.9315