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.