Section 9--322. Priorities among Conflicting Security Interests in and

Agricultural Liens on Same Collateral.

(a) General priority rules. Except as otherwise provided in this
section, priority among conflicting security interests and agricultural
liens in the same collateral is determined according to the following
rules:

(1) Conflicting perfected security interests and agricultural

liens rank according to priority in time of filing or

perfection. Priority dates from the earlier of the time a

filing covering the collateral is first made or the security

interest or agricultural lien is first perfected, if there is

no period thereafter when there is neither filing nor

perfection.

(2) A perfected security interest or agricultural lien has

priority over a conflicting unperfected security interest or

agricultural lien.

(3) The first security interest or agricultural lien to attach or

become effective has priority if conflicting security

interests and agricultural liens are unperfected.

(b) Time of perfection: proceeds and supporting obligations. For the
purposes of subsection (a)(1):

(1) the time of filing or perfection as to a security interest in

collateral is also the time of filing or perfection as to a

security interest in proceeds; and

(2) the time of filing or perfection as to a security interest in

collateral supported by a supporting obligation is also the

time of filing or perfection as to a security interest in the

supporting obligation.

(c) Special priority rules: proceeds and supporting obligations.
Except as otherwise provided in subsection (f), a security interest in
collateral which qualifies for priority over a conflicting security
interest under Section 9--327, 9--328, 9--329, 9--330, or 9--331 also
has priority over a conflicting security interest in:

(1) any supporting obligation for the collateral; and

(2) proceeds of the collateral if:

(A) the security interest in proceeds is perfected;

(B) the proceeds are cash proceeds or of the same type as the

collateral; and

(C) in the case of proceeds that are proceeds of proceeds,

all intervening proceeds are cash proceeds, proceeds of

the same type as the collateral, or an account relating

to the collateral.

(d) First-to-file priority rule for certain collateral. Subject to
subsection (e) and except as otherwise provided in subsection (f), if a
security interest in chattel paper, deposit accounts, negotiable
documents, instruments, investment property, or letter-of-credit rights
is perfected by a method other than filing, conflicting perfected
security interests in proceeds of the collateral rank according to
priority in time of filing.

(e) Applicability of subsection (d). Subsection (d) applies only if
the proceeds of the collateral are not cash proceeds, chattel paper,
negotiable documents, instruments, investment property, or
letter-of-credit rights.

(f) Limitations on subsections (a) through (e). Subsections (a)
through (e) are subject to:

(1) subsection (g) and the other provisions of this part;

(2) Section 4--210 with respect to a security interest of a

collecting bank;

(3) Section 5--118 with respect to a security interest of an

issuer or nominated person; and

(4) Section 9--110 with respect to a security interest arising

under Article 2 or 2-A.

(g) Priority under agricultural lien statute. A perfected agricultural
lien on collateral has priority over a conflicting security interest in
or agricultural lien on the same collateral if the statute creating the
agricultural lien so provides.

(h) Special priority rules: cooperative interests.

(1) With respect to all amounts secured, a cooperative

organization security interest has priority over all other

security interests in a cooperative interest.

(2) As to security interests in cooperative interests other than

cooperative organization security interests, Section

9--323(h) provides special rules for future advances.