New York Laws
Sub Part 3 - Priority
9-336 - Commingled Goods

(a) "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.
(b) 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.
(c) Attachment of security interest to product or mass. If collateral
becomes commingled goods, a security interest attaches to the product or
mass.
(d) 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 (c) is perfected.
(e) Priority of security interest Except as otherwise provided in
subsection (f), the other provisions of this part determine the priority
of a security interest that attaches to the product or mass under
subsection (c).
(f) Conflicting security interests in product or mass If more than one
security interest attaches to the product or mass under subsection (c),
the following rules determine priority:
(1) A security interest that is perfected under subsection (d)
has priority over a security interest that is unperfected at
the time the collateral becomes commingled goods.
(2) If more than one security interest is perfected under
subsection (d), the security interests rank equally in
proportion to the value of the collateral at the time it
became commingled goods.