Florida Statutes
Part III - Perfection and Priority (Ss. 679.3011-679.342)
679.324 - Priority of purchase-money security interests.


(1) 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 s. 679.327, 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 20 days thereafter.
(2) 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 s. 679.330, and, except as otherwise provided in s. 679.327, 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 an authenticated notification to the holder of the conflicting security interest;
(c) The holder of the conflicting security interest receives the notification within 5 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) Paragraphs (2)(b), (c), and (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 s. 679.3121(6), before the beginning of the 20-day period thereunder.

(4) 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 s. 679.327, 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 an authenticated notification to the holder of the conflicting security interest;
(c) The holder of the conflicting security interest receives the notification within 6 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) Paragraphs (4)(b), (c), and (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 s. 679.3121(6), before the beginning of the 20-day period thereunder.

(6) 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 s. 679.327, 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) If more than one security interest qualifies for priority in the same collateral under subsection (1), subsection (2), subsection (4), or subsection (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, s. 679.322(1) applies to the qualifying security interests.

History.—s. 3, ch. 2001-198.

Structure Florida Statutes

Florida Statutes

Title XXXIX - Commercial Relations

Chapter 679 - Uniform Commercial Code: Secured Transactions

Part III - Perfection and Priority (Ss. 679.3011-679.342)

679.3011 - Law governing perfection and priority of security interests.

679.3021 - Law governing perfection and priority of agricultural liens.

679.3031 - Law governing perfection and priority of security interests in goods covered by a certificate of title.

679.3041 - Law governing perfection and priority of security interests in deposit accounts.

679.3051 - Law governing perfection and priority of security interests in investment property.

679.3061 - Law governing perfection and priority of security interests in letter-of-credit rights.

679.3071 - Location of debtor.

679.3081 - When security interest or agricultural lien is perfected; continuity of perfection.

679.3091 - Security interest perfected upon attachment.

679.3101 - When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply.

679.3111 - Perfection of security interests in property subject to certain statutes, regulations, and treaties.

679.3121 - Perfection of security interests in chattel paper, deposit accounts, documents, goods covered by documents, instruments, investment property, letter-of-credit rights, and money; perfection by permissive filing; temporary perfection without...

679.3131 - When possession by or delivery to secured party perfects security interest without filing.

679.3141 - Perfection by control.

679.3151 - Secured party’s rights on disposition of collateral and in proceeds.

679.3161 - Continued perfection of security interest following change in governing law.

679.3171 - Interests that take priority over or take free of security interest or agricultural lien.

679.3181 - No interest retained in right to payment that is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers.

679.319 - Rights and title of consignee with respect to creditors and purchasers.

679.320 - Buyer of goods.

679.321 - Licensee of general intangible and lessee of goods in ordinary course of business.

679.322 - Priorities among conflicting security interests in and agricultural liens on same collateral.

679.323 - Future advances.

679.324 - Priority of purchase-money security interests.

679.325 - Priority of security interests in transferred collateral.

679.326 - Priority of security interests created by new debtor.

679.327 - Priority of security interests in deposit account.

679.328 - Priority of security interests in investment property.

679.329 - Priority of security interests in letter-of-credit right.

679.330 - Priority of purchaser of chattel paper or instrument.

679.331 - Priority of rights of purchasers of instruments, documents, and securities under other articles; priority of interests in financial assets and security entitlements under chapter 678.

679.332 - Transfer of money; transfer of funds from deposit account.

679.333 - Priority of certain liens arising by operation of law.

679.334 - Priority of security interests in fixtures and crops.

679.335 - Accessions.

679.336 - Commingled goods.

679.337 - Priority of security interests in goods covered by certificate of title.

679.338 - Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information.

679.339 - Priority subject to subordination.

679.340 - Effectiveness of right of recoupment or set-off against deposit account.

679.341 - Bank’s rights and duties with respect to deposit account.

679.342 - Bank’s right to refuse to enter into or disclose existence of control agreement.