Opinion ID: 2584079
Heading Depth: 1
Heading Rank: 5

Heading: accounts receivable as inventory

Text: ¶ 13 Section 9-312(3) bestows super-priority status for PMSIs in inventory. However, we need not determine for the purposes of this appeal whether the two accounts receivable were inventory. Under section 9-312(3), the holder of a PMSI in inventory has priority over a conflicting security interest and the identifiable cash proceeds thereof if, among other things, the holder of the PMSI gives written notice to the conflicting security interest holder. Arvest did not give First Bethany written notification as required by section 9-312(3). Even if the accounts receivable are inventory, First Bethany's security interest has priority over Arvest because Arvest failed to give notice. Id. at § 9-312(5).