400.9-103. Purchase-money security interest--application of payments--burden of establishing.

MISSOURI STATUTES AND CODES

400.9-103. Purchase-money security interest--application of payments--burden of establishing.

Purchase-money security interest--application of payments--burden ofestablishing.

400.9-103. (a) In this section:

(1) "Purchase-money collateral" means goods or software that secures apurchase-money obligation incurred with respect to that collateral; and

(2) "Purchase-money obligation" means an obligation of an obligorincurred as all or part of the price of the collateral or for value given toenable the debtor to acquire rights in or the use of the collateral if thevalue is in fact so used.

(b) A security interest in goods is a purchase-money security interest:

(1) To the extent that the goods are purchase-money collateral withrespect to that security interest;

(2) If the security interest is in inventory that is or waspurchase-money collateral, also to the extent that the security interestsecures a purchase-money obligation incurred with respect to other inventoryin which the secured party holds or held a purchase-money security interest;and

(3) Also to the extent that the security interest secures apurchase-money obligation incurred with respect to software in which thesecured party holds or held a purchase-money security interest.

(c) A security interest in software is a purchase-money securityinterest to the extent that the security interest also secures apurchase-money obligation incurred with respect to goods in which the securedparty holds or held a purchase-money security interest if:

(1) The debtor acquired its interest in the software in an integratedtransaction in which it acquired an interest in the goods; and

(2) The debtor acquired its interest in the software for the principalpurpose of using the software in the goods.

(d) The security interest of a consignor in goods that are the subjectof a consignment is a purchase-money security interest in inventory.

(e) In a transaction other than a consumer-goods transaction, if theextent to which a security interest is a purchase-money security interestdepends on the application of a payment to a particular obligation, thepayment must be applied:

(1) In accordance with any reasonable method of application to which theparties agree;

(2) In the absence of the parties' agreement to a reasonable method, inaccordance with any intention of the obligor manifested at or before the timeof payment; or

(3) In the absence of an agreement to a reasonable method and a timelymanifestation of the obligor's intention, in the following order:

(A) To obligations that are not secured; and

(B) If more than one obligation is secured, to obligations secured bypurchase-money security interests in the order in which those obligations wereincurred.

(f) In a transaction other than a consumer-goods transaction, apurchase-money security interest does not lose its status as such, even if:

(1) The purchase-money collateral also secures an obligation that is nota purchase-money obligation;

(2) Collateral that is not purchase-money collateral also secures thepurchase-money obligation; or

(3) The purchase-money obligation has been renewed, refinanced,consolidated, or restructured.

(g) In a transaction other than a consumer-goods transaction, a securedparty claiming a purchase-money security interest has the burden ofestablishing the extent to which the security interest is a purchase-moneysecurity interest.

(h) The limitation of the rules in subsections (e), (f), and (g) totransactions other than consumer-goods transactions is intended to leave tothe court the determination of the proper rules in consumer-goodstransactions. The court may not infer from that limitation the nature of theproper rule in consumer-goods transactions and may continue to applyestablished approaches.