Idaho State Statutes - Idaho Attorney Directory

(a) Except as
otherwise provided in subsection (g) of this section, a perfected
purchase-money security interest in goods other than inventory or livestock
has priority over a conflicting security interest in the same goods and,
except as otherwise provided in section 28-9-327, 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 twenty (20) days thereafter.
(b) Subject to subsection (c) of this section and except as otherwise
provided in subsection (g) of this section, 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
28-9-330, and, except as otherwise provided in section 28-9-327, 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:
(1) The purchase-money security interest is perfected when the debtor
receives possession of the inventory;
(2) The purchase-money secured party sends an authenticated notification
to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receives the
notification within five (5) years before the debtor receives possession
of the inventory; and
(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.
(c) Subsections (b)(2) through (b)(4) of this section apply only if the
holder of the conflicting security interest had filed a financing statement
covering the same types of inventory:
(1) If the purchase-money security interest is perfected by filing,
before the date of the filing; or
(2) If the purchase-money security interest is temporarily perfected
without filing or possession under section 28-9-312(f), before the
beginning of the twenty (20) day period thereunder.
(d) Subject to subsection (e) of this section and except as otherwise
provided in subsection (g) of this section, 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 28-9-327, a perfected security interest in their
identifiable proceeds and identifiable products in their unmanufactured states
also has priority, if:
(1) The purchase-money security interest is perfected when the debtor
receives possession of the livestock;
(2) The purchase-money secured party sends an authenticated notification
to the holder of the conflicting security interest;
(3) The holder of the conflicting security interest receives the
notification within six (6) months before the debtor receives possession
of the livestock; and
(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.
(e) Subsections (d)(2) through (d)(4) of this section apply only if the
holder of the conflicting security interest had filed a financing statement
covering the same types of livestock:
(1) If the purchase-money security interest is perfected by filing,
before the date of the filing; or
(2) If the purchase-money security interest is temporarily perfected
without filing or possession under section 28-9-312(f), before the
beginning of the twenty (20) day period thereunder.
(f) Except as otherwise provided in subsection (g) of this section, 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 28-9-327, 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.
(g) If more than one (1) security interest qualifies for priority in the
same collateral under subsection (a), (b), (d) or (f) of this section:
(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
(2) In all other cases, section 28-9-322(a) applies to the qualifying
security interests.

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