{"data":{"id":"us-de/6-del.-c.-9-324","jurisdiction":"us-de","citation":"6 Del. C. § 9-324","heading":"Priority of purchase-money security interests.","body":"(a) General rule: purchase-money priority. — Except as otherwise provided in subsection (g), a perfected purchase-money security interest in goods other than inventory or livestock that are farm products has priority over a conflicting security interest in the same goods, and, except as otherwise provided in Section 9-327, a perfected security interest in its identifiable proceeds also has priority, if the purchase-money security interest is perfected when the debtor receives possession of the collateral or within 20 days thereafter.\n(b) Inventory purchase-money priority. — Subject to subsection (c) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in inventory has priority over a conflicting security interest in the same inventory, has priority over a conflicting security interest in chattel paper or an instrument constituting proceeds of the inventory and in proceeds of the chattel paper, if so provided in Section 9-330, and, except as otherwise provided in Section 9-327, also has priority in identifiable cash proceeds of the inventory to the extent the identifiable cash proceeds are received on or before the delivery of the inventory to a buyer, if:\n(1) the purchase-money security interest is perfected when the debtor receives possession of the inventory;\n(2) the purchase-money secured party sends a signed notification to the holder of the conflicting security interest;\n(3) the holder of the conflicting security interest receives the notification within five years before the debtor receives possession of the inventory; and\n(4) the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in inventory of the debtor and describes the inventory.\n(c) Holders of conflicting inventory security interests to be notified. — Subsections (b)(2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of inventory:\n(1) if the purchase-money security interest is perfected by filing, before the date of the filing; or\n(2) if the purchase-money security interest is temporarily perfected without filing or possession under Section 9-312(e) or (f), before the beginning of the 20-day period thereunder.\n(d) Livestock purchase-money priority. — Subject to subsection (e) and except as otherwise provided in subsection (g), a perfected purchase-money security interest in livestock that are farm products has priority over a conflicting security interest in the same livestock, and, except as otherwise provided in Section 9-327, a perfected security interest in their identifiable proceeds and identifiable products in their unmanufactured states also has priority, if:\n(1) the purchase-money security interest is perfected when the debtor receives possession of the livestock;\n(2) the purchase-money secured party sends a signed notification to the holder of the conflicting security interest;\n(3) the holder of the conflicting security interest receives the notification within six months before the debtor receives possession of the livestock; and\n(4) the notification states that the person sending the notification has or expects to acquire a purchase-money security interest in livestock of the debtor and describes the livestock.\n(e) Holders of conflicting livestock security interests to be notified. — Subsections (d)(2) through (4) apply only if the holder of the conflicting security interest had filed a financing statement covering the same types of livestock:\n(1) if the purchase-money security interest is perfected by filing, before the date of the filing; or\n(2) if the purchase-money security interest is temporarily perfected without filing or possession under Section 9-312(e) or (f), before the beginning of the 20-day period thereunder.\n(f) Software purchase-money priority. — Except as otherwise provided in subsection (g), a perfected purchase-money security interest in software has priority over a conflicting security interest in the same collateral, and, except as otherwise provided in Section 9-327, a perfected security interest in its identifiable proceeds also has priority, to the extent that the purchase-money security interest in the goods in which the software was acquired for use has priority in the goods and proceeds of the goods under this section.\n(g) Conflicting purchase-money security interests. — If more than one security interest qualifies for priority in the same collateral under subsection (a), (b), (d), or (f):\n(1) a security interest securing an obligation incurred as all or part of the price of the collateral has priority over a security interest securing an obligation incurred for value given to enable the debtor to acquire rights in or the use of collateral; and\n(2) in all other cases, Section 9-322(a) applies to the qualifying security interests.","path":["Title 6. Commerce and Trade","SUBTITLE I","Uniform Commercial Code","ARTICLE 9. Secured Transactions","Part 3","Perfection and Priority"],"source_url":"https://delcode.delaware.gov/title6/c009/sc03/index.html#9-324","current_through":"2026-08-10 (85 Del. Laws, c. 421, 424)","vintage":"","retrieved_at":"2026-09-05T23:02:06Z","sha256":"34928e0357ff9f63c4dbc4416265a0c003ce58a62096baa29345dac1450a2872","source_id":"us-de","stale":true,"prev":"us-de/6-del.-c.-9-323","next":"us-de/6-del.-c.-9-325"},"notice":"GroundRules: Original legal text. Not legal advice."}