Accessions and Commingled Goods

Question 1

What is an accession?

Answer 1

Goods physically united with other goods, but the identity of the original goods isn’t lost

Question 2

What is priority rule regarding accessions?

Answer 2

Ordinary rules of priority apply except that a security interest in the accession is subordinate to a security interest in the whole of the good if the security interest in the whole of the good was perfected pursuant to a certificate of title statute

Question 3

What are commingled goods?

Answer 3

Goods are commingled if they are so physically united with other goods that the identity of the original goods is lost

Question 4

What are priority rules regarding commingled goods?

Answer 4

Ordinary rules of priority apply with the exception of multiple security interests in commingled goods

Question 5

What is priority rule where multiple security interests exists in commingled goods?

Answer 5

Each security interest ranks equally in proportion to the value of the collateral at the time it becomes commingled goods