(a) In this section, "commingled goods" means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.
A security interest does not exist in commingled goods as such. However, a securityinterest may attach to a product or mass that results when goods become commingled goods.
If collateral becomes commingled goods, a security interest attaches to the product ormass.
If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) of this section is perfected.
Except as otherwise provided in subsection (f) of this section, the other provisions ofthis part 3 determine the priority of a security interest that attaches to the product or mass under subsection (c) of this section.
If more than one security interest attaches to the product or mass under subsection (c) of this section, the following rules determine priority:
A security interest that is perfected under subsection (d) of this section has priorityover a security interest that is unperfected at the time the collateral becomes commingled goods.
If more than one security interest is perfected under subsection (d) of this section, thesecurity interests rank equally in proportion to the value of the collateral at the time it became commingled goods.
Source: L. 2001: Entire article R&RE, p. 1368, § 1, effective July 1.