N.Y. Uniform Commercial Code Law § 9-335: Accessions

Section 9--335. Accessions.

(a) Creation of security interest in accession. A security interest

may be created in an accession and continues in collateral that becomes

an accession.

(b) Perfection of security interest. If a security interest is

perfected when the collateral becomes an accession, the security

interest remains perfected in the collateral.

(c) Priority of security interest. Except as otherwise provided in

subsection (d), the other provisions of this part determine the priority

of a security interest in an accession.

(d) Compliance with certificate-of-title statute. A security interest

in an accession is subordinate to a security interest in the whole which

is perfected by compliance with the requirements of a

certificate-of-title statute under Section 9--311 (b).

(e) Removal of accession after default. After default, subject to Part

6, a secured party may remove an accession from other goods if the

security interest in the accession has priority over the claims of every

person having an interest in the whole.

(f) Reimbursement following removal. A secured party that removes an

accession from other goods under subsection (e) shall promptly reimburse

any holder of a security interest or other lien on, or owner of, the

whole or of the other goods, other than the debtor, for the cost of

repair of any physical injury to the whole or the other goods. The

secured party need not reimburse the holder or owner for any diminution

in value of the whole or the other goods caused by the absence of the

accession removed or by any necessity for replacing it. A person

entitled to reimbursement may refuse permission to remove until the

secured party gives adequate assurance for the performance of the

obligation to reimburse.