Article 9 gives consignors an automatic purchase-money security interest in inventory, (18) and courts would likely consider paintings to be inventory.
(87) Purchase-money security holders must perfect their purchase-money security interest when the debtor gains possession of the inventory.
If the consignment of the Picasso survived these definitional challenges and the court deemed the consignment transaction to meet section 9-102(a)(20)'s definition of consignment, Susan would have a purchase-money security interest in the Picasso painting pursuant to UCC section 9-103(d).
[section] 9-324(a) ("[A] perfected purchase-money security interest in goods...
(25.) See Owens & Hoke, supra note 16, at 24 ("[T]he consignor may proactively protect its rights in the consigned goods by perfecting its purchase-money security interest in the consigned goods that UCC [section] 9-103(d) creates.
6 ("Under former Section 9-114, the priority of the consignor's interest is similar to that of a purchase-money security interest....
(requiring the receipt of notice by other security interest holders, who had filed on their interests, within five years before the purchase-money security interest holder takes possession of the security object).
* for the principal purpose of running the software on hardware in which the secured party also has a purchase-money security interest, and
Except for consumer-goods transactions, Article 9 rejects the "transformation rule" that some courts applied under the old Article 9 that provided that purchase-money security interest could lose its "purchase-money" character in certain circumstances, such as a refinancing of the purchase-money debt or having other collateral secure the purchase-money debt.
Purchase-money security interests. Article 9 continues the priority for purchase-money security interests.