NY UCC § 9-103 (2021)
2021 New York Laws UCC - Uniform Commercial Code Article 9 - Secured Transactions Part 1 - General Provisions Sub Part 1 - Short Title, Definitions, and General Concepts 9-103 - Purchase-Money Security Interest; Application of Payments; Burden of Establishing

Section 9--103. Purchase-money   Security   Interest;   Application   of                   Payments; Burden of Establishing.  (a) Definitions. In this section:       (1) "purchase-money collateral"  means  goods  or  software  that            secures  a purchase-money obligation incurred with respect to            that collateral; and       (2) "purchase-money obligation" means an obligation of an obligor            incurred as all or part of the price of the collateral or for            value given to enable the debtor to acquire rights in or  the            use of the collateral if the value is in fact so used.  (b) Purchase-money  security interest in goods. A security interest in goods is a purchase-money security interest:       (1) to the extent that the goods  are  purchase-money  collateral            with respect to that security interest;       (2) if  the  security  interest  is  in  inventory that is or was            purchase-money  collateral,  also  to  the  extent  that  the            security   interest   secures   a  purchase-money  obligation            incurred with respect to other inventory in which the secured            party holds or held a purchase-money security interest; and       (3) also to the extent  that  the  security  interest  secures  a            purchase-money  obligation  incurred with respect to software            in which the secured party holds  or  held  a  purchase-money            security interest.  (c) Purchase-money  security interest in software. A security interest in software is a purchase-money security interest to the extent that the security interest also secures a purchase-money obligation incurred with respect  to  goods  in  which  the  secured  party  holds  or   held   a purchase-money security interest if:       (1) the  debtor  acquired  its  interest  in  the  software in an            integrated transaction in which it acquired  an  interest  in            the goods; and       (2) the  debtor  acquired  its  interest  in the software for the            principal purpose of using the software in the goods.  (d) Consignor's  inventory  purchase-money  security   interest.   The security  interest  of  a  consignor  in goods that are the subject of a consignment is a purchase-money security interest in inventory.  (e) Application of payment in  non-consumer-goods  transaction.  In  a transaction  other  than  a consumer-goods transaction, if the extent to which a security interest is a purchase-money security interest  depends on  the application of a payment to a particular obligation, the payment must be applied:       (1) in accordance with any reasonable method  of  application  to            which the parties agree;       (2) in  the  absence  of  the  parties' agreement to a reasonable            method, in accordance  with  any  intention  of  the  obligor            manifested at or before the time of payment; or       (3) in  the  absence of an agreement to a reasonable method and a            timely manifestation  of  the  obligor's  intention,  in  the            following order:           (A) to obligations that are not secured; and           (B) if  more  than  one obligation is secured, to obligations                secured by purchase-money security interests in the order                in which those obligations were incurred.  (f) No  loss  of  status  of  purchase-money  security   interest   in non-consumer-goods   transaction.   In   a   transaction  other  than  a consumer-goods transaction, a purchase-money security interest does  not lose its status as such, even if:       (1) the purchase-money collateral also secures an obligation that            is not a purchase-money obligation;       (2) collateral that is not purchase-money collateral also secures            the purchase-money obligation; or       (3) the  purchase-money  obligation has been renewed, refinanced,            consolidated, or restructured.  (g) Burden  of  proof  in   non-consumer-goods   transaction.   In   a transaction  other  than  a  consumer-goods transaction, a secured party claiming  a  purchase-money  security  interest  has   the   burden   of establishing   the   extent   to   which  the  security  interest  is  a purchase-money security interest.  (h) Non-consumer-goods transactions; no inference. The  limitation  of the  rules  in  subsections (e), (f), and (g) to transactions other than consumer-goods transactions is  intended  to  leave  to  the  court  the determination  of  the  proper rules in consumer-goods transactions. The court may not infer from that limitation the nature of the  proper  rule in  consumer-goods  transactions  and  may continue to apply established approaches.