New Jersey § 12a:9-324

§ 12a:9-324.

(a) General rule: purchase-money priority. Except as otherwise provided in subsection (g) , 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 12A:9-327, 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. (b) Inventory purchase-money priority. Subject to subsection (c) and except as otherwise provided in subsection (g) , 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 12A:9-330, and, except as

otherwise provided in 12A:9-327, 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: (1) the purchase-money security interest is perfected when the debtor receives possession

of the inventory; (2) the purchase-money secured party sends an authenticated notification to the holder

of the conflicting security interest; (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 sending the notification has or expects

to acquire a purchase-money security interest in inventory of the debtor and describes

the inventory. (c) Holders of conflicting inventory security interests to be notified. Subsections (b) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing

statement covering the same types of inventory: (1) if the purchase-money security interest is perfected by filing, before the date

of the filing; or (2) if the purchase-money security interest is temporarily perfected without filing

or possession under 12A:9-312 (f) , before the beginning of the 20-day period thereunder. (d) Livestock purchase-money priority. Subject to subsection (e) and except as otherwise provided in subsection (g) , 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 12A:9-327, a perfected security interest in their identifiable

proceeds and identifiable products in their unmanufactured states also has priority,

if: (1) the purchase-money security interest is perfected when the debtor receives possession

of the livestock; (2) the purchase-money secured party sends an authenticated notification to the holder

of the conflicting security interest; (3) the holder of the conflicting security interest receives the notification within

six months before the debtor receives possession of the livestock; and (4) 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. (e) Holders of conflicting livestock security interests to be notified. Subsections (d) (2) through (4) apply only if the holder of the conflicting security interest had filed a financing

statement covering the same types of livestock: (1) if the purchase-money security interest is perfected by filing, before the date

of the filing; or (2) if the purchase-money security interest is temporarily perfected without filing

or possession under 12A:9-312 (f) , before the beginning of the 20-day period thereunder. (f) Software purchase-money priority. Except as otherwise provided in subsection (g) , 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 12A:9-327,

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. (g) Conflicting purchase-money security interests. If more than one security interest qualifies for priority in the same collateral

under subsection (a), (b), (d) or (f) : (1) 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 (2) in all other cases, 12A:9-322 (a) applies to the qualifying security interests.