New Jersey § 12a:9-334

§ 12a:9-334.

(a) Security interest in fixtures under this chapter. A security interest under this chapter may be created in goods that are fixtures

or may continue in goods that become fixtures. A security interest does not exist under this chapter in ordinary building materials

incorporated into an improvement on land. (b) Security interest in fixtures under real-property law. This chapter does not prevent creation of an encumbrance upon fixtures under real

property law. (c) General rule: subordination of security interest in fixtures. In cases not governed by subsections (d) through (h) , a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer

or owner of the related real property other than the debtor. (d) Fixtures purchase-money priority. Except as otherwise provided in subsection (h) , a perfected security interest in fixtures has priority over a conflicting interest

of an encumbrancer or owner of the real property if the debtor has an interest of

record in or is in possession of the real property and: (1) the security interest is a purchase-money security interest; (2) the interest of the encumbrancer or owner arises before the goods become fixtures;

and (3) the security interest is perfected by a fixture filing before the goods become

fixtures or within 20 days thereafter. (e) Priority of security interest in fixtures over interests in real property. A perfected security interest in fixtures has priority over a conflicting interest

of an encumbrancer or owner of the real property if: (1) the debtor has an interest of record in the real property or is in possession

of the real property and the security interest: (A) is perfected by a fixture filing before the interest of the encumbrancer or the owner

is of record; and (B) has priority over any conflicting interest of a predecessor in title of the encumbrancer

or owner; (2) before the goods become fixtures, the security interest is perfected by any method permitted by this chapter and the fixtures are readily removable: (A) factory or office machines; (B) equipment that is not primarily used or leased for use in the operation of the real

property; or (C) replacements of domestic appliances that are consumer goods; (3) the conflicting interest is a lien on real property obtained by legal or equitable

proceedings after the security interest was perfected by any method permitted by this

chapter; or (4) the security interest is: (A) created in a manufactured home in a manufactured-home transaction; and (B) perfected pursuant to a statute described in 12A:9-311 (a) (2). (f) Priority based on consent, disclaimer, or right to remove. A security interest in fixtures, whether or not perfected, has priority over a conflicting

interest of an encumbrancer or owner of the real property if: (1) the encumbrancer or owner has, in an authenticated record, consented to the security

interest or disclaimed an interest in the goods as fixtures; or (2) the debtor has a right to remove the goods as against the encumbrancer or owner. (g) Continuation of paragraph (f) (2) priority. The priority of the security interest under paragraph (f) (2) continues for a reasonable time if the debtor's right to remove the goods as against

the encumbrancer or owner terminates. (h) Priority of construction mortgage. A mortgage is a construction mortgage to the extent that it secures an obligation

incurred for the construction of an improvement on land, including the acquisition

cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f) , a security interest in fixtures is subordinate to a construction mortgage if a record

of the mortgage is recorded before the goods become fixtures and the goods become

fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the

extent that it is given to refinance a construction mortgage. (i) Priority of security interest in crops. A perfected security interest in crops growing on real property has priority over

a conflicting interest of an encumbrancer or owner of the real property if the debtor

has an interest of record in or is in possession of the real property. (j) Subsection (i) prevails. Subsection (i) prevails over any inconsistent provisions of state law.