(1) A person who delivers goods under a consignment which is not a security interest and who would be required to file under this chapter by paragraph (3)(c) of Section 36-2-326 has priority over a secured party who is or becomes a creditor of the consignee and who would have a perfected security interest in the goods if they were the property of the consignee, and also has priority with respect to identifiable cash proceeds received on or before delivery of the goods to a buyer, if

1. (a) the consignor complies with the filing provision of the chapter on Sales with respect to consignments (paragraph (3)(c) of Section 36-2-326) before the consignee receives possession of the goods;
2. (b) the consignor gives notification in writing to the holder of the security interest if the holder has filed a financing statement covering the same types of goods before the date of the filing made by the consignor;
3. (c) the holder of the security interest receives the notification within five years before the consignee receives possession of the goods;
4. (d) the notification states that the consignor expects to deliver goods on consignment to the consignee, describing the goods by item or type.

(2) In the case of a consignment which is not a security interest and in which the requirements of the preceding subsection have not been met, a person who delivers goods to another is subordinate to a person who would have a perfected security interest in the goods if they were the property of the debtor.

PART 2. VALIDITY OF SECURITY AGREEMENT AND RIGHTS OF PARTIES THERETO