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(a) Security interest in fixtures under this article. A security interest under this article may be created in goods that are fixtures or may continue in goods that become fixtures. A security interest does not exist under this article in ordinary building materials incorporated into an improvement on land.
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(b) Security interest in fixtures under real-property law. This article does not prevent creation of an encumbrance upon fixtures under real property law.
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(c) General rule: subordination of security interest in fixtures. In cases not governed by subsections (d) through (h), a security interest in fixtures is subordinate to a conflicting interest of an encumbrancer or owner of the related real property other than the debtor.
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(d) Fixtures purchase-money priority. Except as otherwise provided in subsection (h), a perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property and:
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(1) the security interest is a purchase-money security interest;
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(2) the interest of the encumbrancer or owner arises before the goods become fixtures; and
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(3) the security interest is perfected by a fixture filing before the goods become fixtures or within 20 days thereafter.
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(e) Priority of security interest in fixtures over interests in real property. A perfected security interest in fixtures has priority over a conflicting interest of an encumbrancer or owner of the real property if:
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(1) the debtor has an interest of record in the real property or is in possession of the real property and the security interest:
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(A) is perfected by a fixture filing before the interest of the encumbrancer or owner is of record; and
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(B) has priority over any conflicting interest of a predecessor in title of the encumbrancer or owner;
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(2) before the goods become fixtures, the security interest is perfected by any method permitted by this article and the fixtures are readily removable:
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(A) factory or office machines;
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(B) equipment that is not primarily used or leased for use in the operation of the real property; or
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(C) replacements of domestic appliances that are consumer goods;
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(3) the conflicting interest is a lien on the real property obtained by legal or equitable proceedings after the security interest was perfected by any method permitted by this article; or
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(4) the security interest is:
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(A) created in a manufactured home in a manufactured-home transaction; and
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(B) perfected pursuant to a statute described in § 9–311(a)(2).
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(f) Priority based on consent, disclaimer, or right to remove. 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:
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(1) the encumbrancer or owner has, in an authenticated record, consented to the security interest or disclaimed an interest in the goods as fixtures; or
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(2) the debtor has a right to remove the goods as against the encumbrancer or owner.
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(g) Continuation of paragraph (f)(2) priority. The priority of the security interest under paragraph (f)(2) continues for a reasonable time if the debtor’s right to remove the goods as against the encumbrancer or owner terminates.
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(h) Priority of construction mortgage. A mortgage is a construction mortgage to the extent that it secures an obligation incurred for the construction of an improvement on land, including the acquisition cost of the land, if a recorded record of the mortgage so indicates. Except as otherwise provided in subsections (e) and (f), a security interest in fixtures is subordinate to a construction mortgage if a record of the mortgage is recorded before the goods become fixtures and the goods become fixtures before the completion of the construction. A mortgage has this priority to the same extent as a construction mortgage to the extent that it is given to refinance a construction mortgage.
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(i) Priority of security interest in crops. A perfected security interest in crops growing on real property has priority over a conflicting interest of an encumbrancer or owner of the real property if the debtor has an interest of record in or is in possession of the real property.