2023 New York Laws › UCC - Uniform Commercial Code › Article 9 - Secured Transactions › Part 3 - Perfection and Priority › Sub Part 3 - Priority › 9-334 - Priority of Security Interests in Fixtures and Crops

Section 9--334. Priority of Security Interests in Fixtures and Crops.
(a) Security  interest  in  fixtures  under  this  article. A security
interest under this article may be created in goods that are fixtures or
may continue in goods that become fixtures. A security interest does not
exist under this article in  ordinary  building  materials  incorporated
into an improvement on land.
(b) Security  interest  in  fixtures  under  real  property  law. This
article 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:
(1) the debtor has an interest of record in the real property  or
is  in  possession  of  the  real  property  and the security
interest:
(A) is perfected by a fixture filing before the  interest  of
the encumbrancer or owner is of record; and
(B) 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 article and the
fixtures are readily removable:
(A) factory or office machines;
(B) equipment that is not primarily used or leased for use in
the operation of the real property; or
(C) replacements of domestic  appliances  that  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
article; or
(4) the security interest is:
(A) created  in  a  manufactured  home in a manufactured-home
transaction; and
(B) perfected pursuant to  a  statute  described  in  Section
9--311(a)(2).
(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  paragraph  (f)(2)  priority. The priority of the
security interest under paragraph (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.
(j) Subsection   (i)   prevails.  Subsection  (i)  prevails  over  any
inconsistent provisions with this article or any other chapter of law.