2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 93 - Perfection and Priority
Section 9334 - Priority of security interests in fixtures and crops

     § 9334.  Priority of security interests in fixtures and crops.
        (a)  Security interest in fixtures under this division.--A
     security interest under this division may be created in goods
     which are fixtures or may continue in goods which become
     fixtures. A security interest does not exist under this division
     in ordinary building materials incorporated into an improvement
     on land.
        (b)  Security interest in fixtures under real property law.--
     This division 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 any of the following paragraphs apply:
            (1)  The debtor has an interest of record in the real
        property or is in possession of the real property and the
        security interest:
                (i)  is perfected by a fixture filing before the
            interest of the encumbrancer or owner is of record; and
                (ii)  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
        division and the fixtures are readily removable:
                (i)  factory or office machines;
                (ii)  equipment which is not primarily used or leased
            for use in the operation of the real property; or
                (iii)  replacements of domestic appliances which are
            consumer goods.
            (3)  The conflicting interest is a lien on the real
        property obtained by legal or equitable proceedings after the
        security interest was perfected by any method permitted by
        this division.
            (4)  The security interest is:
                (i)  created in a manufactured home in a
            manufactured-home transaction; and
                (ii)  perfected pursuant to a statute described in
            section 9311(a)(2) (relating to perfection of security
            interests in property subject to certain statutes,
            regulations and treaties).
        (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 subsection (f)(2) priority.--The
     priority of the security interest under subsection (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.

        Cross References.  Section 9334 is referred to in section
     9109 of this title.