Nevada § 104.9324 - Priority of purchase-money security interests

§ 104.9324. Priority of purchase-money security interests

1. Subject to subsection 2 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 NRS 104.9330 , and, except as otherwise provided in NRS 104.9327 , 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 a signed 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. 2. Paragraphs (b), (c) and (d) of subsection 1 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 subsection 6 of NRS 104.9312 , before the beginning of the 20-day period thereunder. 3. 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 NRS 104.9327 , 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 a signed 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. 4. Paragraphs (b), (c) and (d) of subsection 3 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 subsection 6 of NRS 104.9312 , before the beginning of the 20-day period thereunder. 5. 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 NRS 104.9327 , 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. 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 NRS 104.9327 , 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, 3, 5 or 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, subsection 1 of NRS 104.9322 applies to the qualifying security interests.