Accessions

Question 1

What is an Accession?

Answer 1

Accessions are goods that are physically united with other goods in such a manner that the identity of the original goods is not lost (for example, tires on a car).

Question 2

How is a Secured Interest in an Accession Perfected?

Answer 2

If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.

Question 3

What is the Priority Rule for an Accession?

Answer 3

As a general rule, the rules for priority previously discussed (for example, first to file or perfect, special PMSI rules) apply to accessions.

Question 4

What is the Special Priority Rule for Accessions When Dealing with Vehicles?

Answer 4

A security interest in an accession is subordinate to a security interest in a whole (for example, a car) which is perfected by compliance with the requirements of a certificate-of-title statute.

Question 5

Can a Secured Party Remove an Accession from other goods?

Answer 5

A secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.

• The secured party removing the accession is responsible for the cost of repair of any physical injury to the whole or the other goods.
• A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.