Basic Uniform Commercial Code
Fixtures are goods that are part of real property. (As determined by state law) (On both Chrisman's exam and the bar exam, they will be very obviously permanent.)
Generally, a real estate encumbrancer or owner will take over someone with a security interest in a fixture. UCC § 9-334(c).
A purchase-money security interest will prevail over the property encumbrancer or owner. UCC § 9-334(d).
A fixture filing locally where the debtor is located gives priority in fixtures over property encumbrancers or owners. UCC § 9-334(e)(1).
- A normal financing statement can still perfect and give priority over others.
A perfected secured party has priority in goods that became fixtures after perfection over a property encumbrancer or owner if the goods are: factory or office machines; equipment that is not primarily used or leased for use in the operation of the real property; or replacements of domestic appliances that are consumer goods. UCC § 9-334(e)(2).
- 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:
- the encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures