Section 9-312 of the Uniform Commercial Code determines the priority of conflicting security interests' in the same collateral. Generally, the first security interest filed is superior to all others. An exception is allowed for a purchase money security interest perfected within ten days of the debtor receiving the noninventory goods. In North Platte State Bank v. Production Credit Association, the Nebraska Supreme Court held the ten-day grace period begins when possession is received, rather than when the purchaser technically becomes a "debtor" of the purchase money creditor. This decision, though in direct conflict with other authority, is proper because it assures the certainty of security interests in noninventory collateral. This Note concentrates on the Nebraska decision that the North Platte State Bank's purchase money security interest did not have priority under UCC 9-312(4) because it was filed two months after the debtor received possession of the collateral.
Security Interest—Grace Period Examined: North Platte State Bank v. Production Credit Association, 189 Neb. 44, 200 N.W.2d 1 (1972),
52 Neb. L. Rev. 421
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