2010 New York Code
UCC - Uniform Commercial Code
Article 9 - SECURED TRANSACTIONS
Part 3 - PERFECTION AND PRIORITY
Sub Part 3 - (9-317 - 9-339) PRIORITY
9-336 - Commingled Goods

Section 9--336. Commingled Goods.
    (a) "Commingled  goods."  In  this  section,  "commingled goods" means
  goods that are physically united with other goods in such a manner  that
  their identity is lost in a product or mass.
    (b) No  security  interest  in  commingled  goods  as such. A security
  interest does not exist in commingled goods as such. However, a security
  interest may attach to a product or mass that results when goods  become
  commingled goods.
    (c) Attachment  of security interest to product or mass. If collateral
  becomes commingled goods, a security interest attaches to the product or
  mass.
    (d) Perfection  of  security  interest.  If  a  security  interest  in
  collateral  is perfected before the collateral becomes commingled goods,
  the security interest  that  attaches  to  the  product  or  mass  under
  subsection (c) is perfected.
    (e) Priority  of  security  interest  Except  as otherwise provided in
  subsection (f), the other provisions of this part determine the priority
  of a security interest that  attaches  to  the  product  or  mass  under
  subsection (c).
    (f) Conflicting security interests in product or mass If more than one
  security  interest attaches to the product or mass under subsection (c),
  the following rules determine priority:
         (1) A security interest that is perfected  under  subsection  (d)
             has  priority over a security interest that is unperfected at
             the time the collateral becomes commingled goods.
         (2) If  more  than  one  security  interest  is  perfected  under
             subsection  (d),  the  security  interests  rank  equally  in
             proportion to the value of the  collateral  at  the  time  it
             became commingled goods.