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Subpart 3 PRIORITY
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§ 9-317. Interests that take priority over security interest.
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A. Subordination to Certain Lien Creditors and Purchasers. A security interest is subordinate to the rights of:

1. A person that becomes a lien creditor before the security interest is perfected;

2. A buyer of tangible personal property (including instruments and tangible documents or chattel paper), a lessee of goods, a licensee of a general intangible, or a buyer of accounts or general intangibles or securities that

a. Gives value, and

b. In the case of a buyer of tangible personal property, a lessee of goods, or a buyer of a security certificate, acquires possession;

c. In all cases to which this subsection (A)(2) applies, without knowledge of the security interest and before it is perfected;

3. A secured party entitled to priority under subsection (C) of this section.

B. Purchase-Money Grace Period. Notwithstanding subsection (A) of this section, a purchase-money secured party that files a financing statement before or within twenty (20) days after the debtor acquires possession of the collateral has priority over the rights of a buyer, lessee or lien creditor which arise between the time the security interest attaches and the time of filing.

C. General Rule for Priority among Conflicting Secured Parties. Priority among conflicting security interests in the same collateral is determined as follows:

1. Conflicting perfected security interests in the same collateral rank according to priority in time of filing or perfection. Priority dates from the earlier of the time a filing covering the collateral is first made or the security interest is first perfected, if there is no period thereafter when there is neither filing nor perfection.

2. A perfected security interest has priority over a conflicting unperfected security interest.

3. The first security interest to attach has priority if conflicting security interests are unperfected.

D. Time of Perfection for Proceeds. The time of filing or perfection as to a security interest in collateral is also the time of filing or perfection as to a security interest in proceeds, except as provided in 27A ONC § 9-318.

E. Priority in Proceeds. Except as provided elsewhere in this part, a security interest that has priority under 27A ONC § 9-318(E), (F) or (J) also has priority over a conflicting security interest in proceeds if

1. The security interest in proceeds is perfected;

2. The proceeds are cash proceeds or of the same type as the collateral; and

3. In the case of proceeds of proceeds, all intervening proceeds are cash proceeds, proceeds of the same type as the collateral, or an account relating to the collateral.

F. First-to-File Rule for Certain Collateral. If a security interest in chattel paper, negotiable documents, instruments, securities or investment accounts is perfected by a method other than filing, and if the proceeds are not cash proceeds, chattel paper, negotiable documents, instruments, securities, investment accounts or letter of credit rights, then priority in the proceeds is determined by the order of any filing.

G. Deferral to Other Applicable Law. If applicable law other than this Osage Nation Secured Transactions Act gives a security interest or right of set-off to a collecting bank, an issuer or nominated person with respect to a letter of credit, a buyer or seller or lessee of goods, or in personal property that is not subject to this Osage Nation Secured Transactions Act, that law governs in the event of conflict with the provisions of this Osage Nation Secured Transactions Act. ONCA 07-22, eff. June 18, 2007.