Pennsylvania Consolidated & Unconsolidated Statutes
Chapter 93 - Perfection and Priority
Section 9322 - Priorities among conflicting security interests in and agricultural liens on same collateral

§ 9322. Priorities among conflicting security interests in and
agricultural liens on same collateral.
(a) General priority rules.--Except as otherwise provided in this section, priority among conflicting security interests and agricultural liens in the same collateral is determined according to the following rules:
(1) Conflicting perfected security interests and agricultural liens rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest or agricultural lien is first perfected, if there is no period thereafter when there is neither filing nor perfection.
(2) A perfected security interest or agricultural lien has priority over a conflicting unperfected security interest or agricultural lien.
(3) The first security interest or agricultural lien to attach or become effective has priority if conflicting security interests and agricultural liens are unperfected.
(b) Time of perfection: proceeds and supporting obligations.--For the purposes of subsection (a)(1):
(1) the time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds; and
(2) the time of filing or perfection as to a security interest in collateral supported by a supporting obligation is also the time of filing or perfection as to a security interest in the supporting obligation.
(c) Special priority rules: proceeds and supporting obligations.--Except as otherwise provided in subsection (f), a security interest in collateral which qualifies for priority over a conflicting security interest under section 9327 (relating to priority of security interests in deposit account), 9328 (relating to priority of security interests in investment property), 9329 (relating to priority of security interests in letter-of-credit right), 9330 (relating to priority of purchaser of chattel paper or instrument) or 9331 (relating to priority of rights of purchasers of instruments, documents and securities under other divisions; priority of interests in financial assets and security entitlements under Division 8) also has priority over a conflicting security interest in all of the following:
(1) Any supporting obligation for the collateral.
(2) Proceeds of the collateral if:
(i) the security interest in proceeds is perfected;
(ii) the proceeds are cash proceeds or of the same type as the collateral; and
(iii) in the case of proceeds which are proceeds of proceeds, all intervening proceeds are:
(A) cash proceeds;
(B) proceeds of the same type as the collateral; or
(C) an account relating to the collateral.
(d) First-to-file priority rule for certain collateral.-- Subject to subsection (e) and except as otherwise provided in subsection (f), if a security interest in chattel paper, deposit accounts, negotiable documents, instruments, investment property or letter-of-credit rights is perfected by a method other than filing, conflicting perfected security interests in proceeds of the collateral rank according to priority in time of filing.
(e) Applicability of subsection (d).--Subsection (d) applies only if the proceeds of the collateral are not cash proceeds, chattel paper, negotiable documents, instruments, investment property or letter-of-credit rights.
(f) Limitations on subsections (a) through (e).--Subsections (a) through (e) are subject to:
(1) subsection (g) and the other provisions of this chapter;
(2) section 4210 (relating to security interest of collecting bank in items, accompanying documents and proceeds);
(3) section 5118 (relating to security interest of issuer or nominated person); and
(4) section 9110 (relating to security interests arising under Division 2 or 2A).
(g) Priority under agricultural lien statute.--A perfected agricultural lien on collateral has priority over a conflicting security interest in or agricultural lien on the same collateral if the statute creating the agricultural lien so provides.
Cross References. Section 9322 is referred to in sections 9109, 9317, 9323, 9324, 9325, 9328, 9330, 9709 of this title.

Structure Pennsylvania Consolidated & Unconsolidated Statutes

Pennsylvania Consolidated & Unconsolidated Statutes

Title 13 - COMMERCIAL CODE

Chapter 93 - Perfection and Priority

Extra - Chapter Notes

Section 9301 - Law governing perfection and priority of security interests

Section 9302 - Law governing perfection and priority of agricultural liens

Section 9303 - Law governing perfection and priority of security interests in goods covered by certificate of title

Section 9304 - Law governing perfection and priority of security interests in deposit accounts

Section 9305 - Law governing perfection and priority of security interests in investment property

Section 9306 - Law governing perfection and priority of security interests in letter-of-credit rights

Section 9307 - Location of debtor

Section 9308 - When security interest or agricultural lien is perfected; continuity of perfection

Section 9309 - Security interest perfected upon attachment

Section 9310 - When filing required to perfect security interest or agricultural lien; security interests and agricultural liens to which filing provisions do not apply

Section 9311 - Perfection of security interests in property subject to certain statutes, regulations and treaties

Section 9312 - 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 with...

Section 9313 - When possession by or delivery to secured party perfects security interest without filing

Section 9314 - Perfection by control

Section 9315 - Secured party's rights on disposition of collateral and in proceeds

Section 9316 - Effect of change in governing law

Section 9317 - Interests which take priority over or take free of security interest or agricultural lien

Section 9318 - No interest retained in right to payment which is sold; rights and title of seller of account or chattel paper with respect to creditors and purchasers

Section 9319 - Rights and title of consignee with respect to creditors and purchasers

Section 9320 - Buyer of goods

Section 9321 - Licensee of general intangible and lessee of goods in ordinary course of business

Section 9322 - Priorities among conflicting security interests in and agricultural liens on same collateral

Section 9323 - Future advances

Section 9324 - Priority of purchase-money security interests

Section 9325 - Priority of security interests in transferred collateral

Section 9326 - Priority of security interests created by new debtor

Section 9327 - Priority of security interests in deposit account

Section 9328 - Priority of security interests in investment property

Section 9329 - Priority of security interests in letter-of-credit right

Section 9330 - Priority of purchaser of chattel paper or instrument

Section 9331 - Priority of rights of purchasers of instruments, documents and securities under other divisions; priority of interests in financial assets and security entitlements under Division 8

Section 9332 - Transfer of money; transfer of funds from deposit account

Section 9333 - Priority of certain liens arising by operation of law

Section 9334 - Priority of security interests in fixtures and crops

Section 9335 - Accessions

Section 9336 - Commingled goods

Section 9337 - Priority of security interests in goods covered by certificate of title

Section 9338 - Priority of security interest or agricultural lien perfected by filed financing statement providing certain incorrect information

Section 9339 - Priority subject to subordination

Section 9340 - Effectiveness of right of recoupment or set-off against deposit account

Section 9341 - Bank's rights and duties with respect to deposit account

Section 9342 - Bank's right to refuse to enter into or disclose existence of control agreement