Del. Code Ann. tit. 6, § 9-336
Commingled goods
72 Del. Laws, c. 401, § 1;
- (a) “Commingled goods.” — In this section, “commingled goods” means goods that are physically united with other goods in such a manner that their identity is lost in a product or mass.
- (b) No security interest in commingled goods as such. — A security interest does not exist in commingled goods as such. However, a security interest may attach to a product or mass that results when goods become commingled goods.
- (c) Attachment of security interest to product or mass. — If collateral becomes commingled goods, a security interest attaches to the product or mass.
- (d) Perfection of security interest. — If a security interest in collateral is perfected before the collateral becomes commingled goods, the security interest that attaches to the product or mass under subsection (c) is perfected.
- (e) Priority of security interest. — Except as otherwise provided in subsection (f), the other provisions of this part determine the priority of a security interest that attaches to the product or mass under subsection (c).
(f) Conflicting security interests in product or mass. — If more than one security interest attaches to the product or mass under subsection (c), the following rules determine priority:
- (1) A security interest that is perfected under subsection (d) has priority over a security interest that is unperfected at the time the collateral becomes commingled goods.
- (2) If more than one security interest is perfected under subsection (d), the security interests rank equally in proportion to value of the collateral at the time it became commingled goods.