14-9-312. PRIORITIES AMONG CONFLICTING SECURITY INTERESTS IN THE SAME COLLATERAL.

1. The rules of priority stated in other sections of this Part and in the following sections shall govern when applicable: Section 103 on security interests related to other jurisdictions, Section 114 on consignments.
2. A perfected security interest in crops for new value is given to enable the debtor to produce the crops during the production season and given not more than three months before the crops become growing crops by planting or otherwise, takes priority over an earlier perfected security interest to the extent that such earlier interest secures obligations due more than six months before the crops become growing crops by planting or otherwise, even though the person giving new value had knowledge of the earlier security interest.
3. A perfected purchase money security interest in inventory has priority over a conflicting security interest in the same inventory. It also has priority in identifiable cash proceeds received on or before the delivery of the inventory to a buyer if
   1. The purchase money security interest is perfected at the time the debtor receives possession of the inventory; and
   2. The purchase money secured party gives notification in writing to the holder of the conflicting security interest if the holder has filed a financing statement covering the same types of inventory
      1. before the date of the filing made by the purchase money secured party, or
      2. before the beginning of the 21 day period where the purchase money security interest is temporarily perfected without filing or possession (subsection (5) of Section 304); and
   3. The holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and
   4. The notification states that the person giving the notice has or expects to acquire a purchase money security interests in the inventory of the debtor, describing such inventory by item or type.
4. A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives possession of the collateral or within 20 days thereafter.
5. In all cases not governed by other rules stated in this section (including cases of purchase money security interests which do not qualify for the special priorities set forth in subsections (3) and (4) of this section), priority between conflicting security interests in the same collateral shall be determined according to the following rules;
   1. Conflicting security interests rank according to priority in time of filing or perfection. Priority dates form the time a filing is first made covering the collateral or the time the security interest is first perfected, whichever is earlier, provided that there is no period thereafter when there is neither filing nor perfection.
   2. So long as conflicting security interests are unperfected, the first to attach has priority.
6. For purposes of subsection (5), a date of filing or perfection as to collateral is also a date of filing or perfection as to its proceeds.
7. If future advances are made while a security interest is perfected by filing, the taking of possession, or under the law of securities, the security interest has the same priority for the purpose of subsection (5) with respect to the future advances as it does with respect to the first advance. If a commitment is made before or while the security interest is so perfected, the security interest has the same priority with respect to advances made pursuant thereto. In other cases a perfected security interest has priority from the date the advance is made.