(810 ILCS 5/9-336)
Sec. 9-336.
Commingled goods.
(a) "Commingled goods." 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.
(b) No security interest in commingled goods as such. A security
interest does not exist in commingled goods as such. However, a security
interest
may attach to a product or mass that results when goods become commingled
goods.
(c) Attachment of security interest to product or mass. If
collateral becomes commingled goods, a security interest attaches to the product or
mass.
(d) Perfection of security interest. 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) is
perfected.
(e) Priority of security interest. Except as otherwise provided in
subsection (f), the other provisions of this Part determine the priority of a security
interest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass If more than
one security interest attaches to the product or mass under subsection (c), the
following rules determine priority:
(1) A security interest that is perfected under |
| subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.
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(2) If more than one security interest is perfected
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| under subsection (d), the security interests rank equally in proportion to the value of the collateral at the time it became commingled goods.
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(Source: P.A. 91-893, eff. 7-1-01.)
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