Meaning
Statutory commercial provisions establish priority rules for security interests in accessions, which are goods physically united with other goods without losing their original identity. Rules codified in UCC section 9-335 state that a security interest in an accession continues in the combined good and retains priority over subsequent claims on the whole. Exceptions arise when a security interest in the whole is perfected before the accession interest is perfected.
Subassembly integration in vehicle and industrial machinery manufacturing relies on these priority definitions.
Accession Integration
Attaching specialized subassemblies, such as high-capacity engines or specialized hydraulic pumps, onto base manufacturing equipment creates complex multi-party security claims. Financiers securing individual components must verify priority before subassemblies are physically attached to main frames. Failing to perfect security interests prior to component integration forfeits priority to existing secured parties holding claims over the complete machine.
Proper documentation prevents loss of collateral rights during equipment repossessions.
Removal Rights
Secured parties with priority over an accession may remove the component from the whole upon default, provided they reimburse structural damage caused by removal.
Component Scope
Protection applies strictly to identifiable goods physically attached to other goods, excluding goods that lose identity through chemical blending or fluid mixing.
