§ 9-115. Purchase-money security interest.
A. Definitions. In this section:
1. “Purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral.
2. “Purchase-money obligation” means an obligation of an obligor incurred as all or part of the price of the collateral or for value given to enable the debtor to acquire rights in or the use of the collateral if the value is in fact so used.
B. Purchase-Money Security Interest in Goods. A security interest in goods is a purchase-money security interest:
1. To the extent that the goods are purchase-money collateral with respect to that security interest;
2. If the security interest is in inventory that is or was purchase-money collateral, also to the extent that the security interest secures a purchase-money obligation incurred with respect to other inventory in which the secured party holds or held a purchase-money security interest; and
3. Also to the extent that the security interest secures a purchase-money obligation incurred with respect to software in which the secured party holds or held a purchase-money security interest.
C. Purchase-Money Security Interest in Software. A security interest in software is a purchase-money security interest to the extent that the security interest also secures a purchase-money obligation incurred with respect to goods in which the secured party holds or held a purchase-money security interest if:
1. The debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and
2. The debtor acquired its interest in the software for the principal purpose of using the software in the goods.
D. Consignor’s Inventory Purchase-Money Security Interest. The security interest of a consignor in goods that are the subject of a consignment is a purchase-money security interest in inventory.
E. Application of Payment in Nonconsumer Transaction. In a transaction other than a consumer transaction, if the extent to which a security interest is a purchase-money security interest depends on the application of a payment to a particular obligation, the payment must be applied:
1. In accordance with any reasonable method of application to which the parties agree;
2. If subsection (E)(1) of this section does not apply, in accordance with the intention of the obligor manifested at or before the time of payment; or
3. If neither subsection (E)(1) of this section nor subsection (E)(2) of this section applies, in the following order:
a. To obligations that are not secured; and
b. If more than one obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.
F. No Loss of Purchase-Money Security Interest in Nonconsumer Transaction. In a transaction other than a consumer transaction, a purchase-money security interest does not lose its status as such, even if:
1. The purchase-money collateral also secures an obligation that is not a purchase-money obligation;
2. Collateral that is not purchase-money collateral also secures the purchase-money obligation; or
3. The purchase-money obligation has been renewed, refinanced, consolidated, or restructured.
G. Burden of Proof in Nonconsumer Transaction. In a transaction other than a consumer goods transaction, a secured party claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest. ONCA 07-22, eff. June 18, 2007.