12A:9-335 Accessions.
12A:9-335. Accessions.
(a)Creation of security interest in accession. A security interest may be created in an accession and continues in collateral that becomes an accession.
(b)Perfection of security interest. If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.
(c)Priority of security interest. Except as otherwise provided in subsection (d), the other provisions of this part determine the priority of a security interest in an accession.
(d)Compliance with certificate-of-title statute. A security interest in an accession is subordinate to a security interest in the whole which is perfected by compliance with the requirements of a certificate-of-title statute under 12A:9-311 (b).
(e)Removal of accession after default. After default, subject to Part 6, a secured party may remove an accession from other goods if the security interest in the accession has priority over the claims of every person having an interest in the whole.
(f)Reimbursement following removal. A secured party that removes an accession from other goods under subsection (e) shall promptly reimburse any holder of a security interest or other lien on, or owner of, the whole or of the other goods, other than the debtor, for the cost of repair of any physical injury to the whole or the other goods. The secured party need not reimburse the holder or owner for any diminution in value of the whole or the other goods caused by the absence of the accession removed or by any necessity for replacing it. A person entitled to reimbursement may refuse permission to remove until the secured party gives adequate assurance for the performance of the obligation to reimburse.
L.2001, c.117, s.1; amended 2001, c.386, s.51.
Section: Previous 12a-9-328 12a-9-329 12a-9-330 12a-9-331 12a-9-332 12a-9-333 12a-9-334 12a-9-335 12a-9-336 12a-9-337 12a-9-338 12a-9-339 12a-9-340 12a-9-341 12a-9-342 Next
Last modified: October 11, 2016