Vanderbilt Law Review

First Page



Article 9 of the Uniform Commercial Code established an exhaustive scheme for the determination and control of security interest in personal property and fixtures' which is now the law of all but one of the states and the District of Columbia Not the least momentous of the provisions in Article 9 are those that govern priorities among conflicting security interests in the same collateral. The purpose of this inquiry is to examine the rules of priority that the U.C.C. provides for a conflict between the holder of a purchase money security interest in inventory and proceeds and a holder of a prior security interest in accounts receivable. Conflict between the security interests of suppliers and bankers is not uncommon in an economy where many businesses use both trade and bank financing.