§ 9—334. Priority of security interests in fixtures and crops
(a) 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) This article does not prevent creation of an encumbrance upon fixtures under real
property law.
(c) In cases not governed by subsections (d) through (h) of this section, 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) Except as otherwise provided in subsection (h) of this section, 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) 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 subdivision 9—311(a)(2) of this title.
(f) 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 a signed 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) The priority of the security interest under subsection (f) of this section continues
for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer
or owner terminates.
(h) 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) of this section, 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) 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. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001; amended 2025, No. 17, § 9, eff. July 1, 2025.)