The Florida Senate

679.312  Priorities among conflicting security interests in the same collateral.--

(1)  The rules of priority stated in other sections of this part and in the following sections shall govern when applicable: s. 674.2101 with respect to the security interests of collecting banks in items being collected, accompanying documents, and proceeds; s. 679.103 on security interests related to other jurisdictions; s. 679.114 on consignments; s. 679.115 on security interests in investment property.

(2)  A perfected security interest in crops for new value given to enable the debtor to produce the crops during the production season and given not more than 3 months before the crops become growing crops by planting or otherwise takes priority over an earlier perfected security interest to the extent that such earlier interest secures obligations due more than 6 months before the crops become growing crops by planting or otherwise, even though the person giving new value had knowledge of the earlier security interest.

(3)  A perfected purchase money security interest in inventory has priority over a conflicting security interest in the same inventory and also has priority in identifiable cash proceeds received on or before the delivery of the inventory to a buyer if:

(a)  The purchase money security interest is perfected at the time the debtor receives possession of the inventory; and

(b)  The purchase money secured party gives notification in writing to the holder of the conflicting security interest if the holder had filed a financing statement covering the same types of inventory:

1.  Before the date of the filing made by the purchase money-secured party; or

2.  Before the beginning of the 21-day period when the purchase money security interest is temporarily perfected without filing or possession (see s. 679.304(5)); and

(c)  The holder of the conflicting security interest receives the notification within 5 years before the debtor receives possession of the inventory; and

(d)  The notification states that the person giving the notice has or expects to acquire a purchase money security interest in inventory of the debtor, describing such inventory by item or type.

If any of the foregoing four requirements are not met, the priority of the purchase money security interest shall be determined under subsection (5).

(4)  A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives possession of the collateral or within 15 days thereafter. Failure to so perfect shall cause the priority of the purchase money security interest to be determined under subsection (5).

(5)  In all cases not governed by other rules stated in this section (including cases of purchase money security interests which do not qualify for the special priorities set forth in subsections (3) and (4)), priority between conflicting security interests in the same collateral shall be determined according to the following rules:

(a)  Conflicting security interests rank according to priority in time of filing or perfection. Priority dates from the time a filing is first made covering the collateral or the time the security interest is first perfected, whichever is earlier, provided that there is no period thereafter when there is neither filing nor perfection.

(b)  So long as conflicting security interests are unperfected, the first to attach has priority.

(6)  For the purposes of subsection (5), a date of filing or perfection as to collateral is also a date of filing or perfection as to proceeds.

(7)  If future advances are made while a security interest is perfected by filing, the taking of possession, or under s. 679.115 or s. 679.116 on investment property, the security interest has the same priority for the purposes of subsection (5) or s. 679.115(5) with respect to the future advances as it does with respect to the first advance. If a commitment is made before or while the security interest is so perfected, the security interest has the same priority with respect to advances made pursuant thereto. In other cases, a perfected security interest has priority from the date the advance is made.

History.--s. 1, ch. 65-254; s. 2, ch. 78-222; s. 22, ch. 79-398; s. 3, ch. 81-276; s. 2, ch. 84-53; s. 10, ch. 87-275; s. 56, ch. 92-82; s. 19, ch. 98-11.

Note.--s. 9-312, U.C.C.; supersedes chs. 700, 698.