Document ID: chunk:federal_register_of_legislation:C2024C00719:section:14:p2
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 14 (pt 2/2)
Character Range: 78498–79708

a payment to a particular obligation, the payment must be applied:
 (a) in accordance with any method of application to which the parties agree; or
 (b) if the parties do not agree on a method—in accordance with any intention of the debtor manifested at or before the time of the payment; or
 (c) if neither paragraph (a) nor (b) applies—in the following order:
 (i) to obligations that are not secured, in the order in which those obligations were incurred;
 (ii) to obligations that are secured, but not by purchase money security interests, in the order in which those obligations were incurred;
 (iii) to obligations that are secured by purchase money security interests, in the order in which those obligations were incurred.

Purchase money obligations
 (7) This subsection covers an obligation of a debtor incurred:
 (a) as all or part of the purchase price of the collateral; or
 (b) for value given to enable the grantor to acquire or use the collateral (provided the collateral is so acquired or used).

References to purchase price and value
 (8) In this section, a reference to a purchase price, or value, includes a reference to credit charges and interest payable for the purchase or loan credit.