{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2026\/code-json\/8.9A-103.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2026\/code-text\/8.9A-103.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2026\/code-xml\/8.9A-103.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2026\/code-html\/8.9A-103.html"}],"law_id":378356,"edition_id":2,"section_id":378356,"structure_id":53766,"section_number":"8.9A-103","catch_line":"Purchase-money security interest; application of payments; burden of establishing","history":"1964, c. 219, \u00a7 8.9-107; 2000, c. 1007.","full_text":"a\n\nDefinitions. In this section:\n\n1\n\n“purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and\n\n2\n\n“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.\n\nb\n\nPurchase-money security interest in goods. A security interest in goods is a purchase-money security interest:\n\n1\n\nto the extent that the goods are purchase-money collateral with respect to that security interest;\n\n2\n\nif 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\n\n3\n\nalso 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.\n\nc\n\nPurchase-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:\n\n1\n\nthe debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and\n\n2\n\nthe debtor acquired its interest in the software for the principal purpose of using the software in the goods.\n\nd\n\nConsignor’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.\n\ne\n\nApplication of payment in nonconsumer-goods transaction. In a transaction other than a consumer-goods 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:\n\n1\n\nin accordance with any reasonable method of application to which the parties agree;\n\n2\n\nin the absence of the parties’ agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or\n\n3\n\nin the absence of an agreement to a reasonable method and a timely manifestation of the obligor’s intention, in the following order:\n\nA\n\nto obligations that are not secured; and\n\nB\n\nif more than one obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.\n\nf\n\nNo loss of status of purchase-money security interest in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, a purchase-money security interest does not lose its status as such, even if:\n\n1\n\nthe purchase-money collateral also secures an obligation that is not a purchase-money obligation;\n\n2\n\ncollateral that is not purchase-money collateral also secures the purchase-money obligation; or\n\n3\n\nthe purchase-money obligation has been renewed, refinanced, consolidated, or restructured.\n\ng\n\nBurden of proof in nonconsumer-goods 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.\n\nh\n\nNonconsumer-goods transactions; no inference. The limitation of the rules in subsections (e), (f), and (g) to transactions other than consumer-goods transactions is intended to leave to the court the determination of the proper rules in consumer-goods transactions. The court may not infer from that limitation the nature of the proper rule in consumer-goods transactions and may continue to apply established approaches.\n\ni\n\nGoods covered by negotiable document. The attachment of a security interest in a negotiable document is also attachment of a security interest in the goods covered by the negotiable document.\n\n","order_by":null,"text":{"0":{"id":1411938,"text":"Definitions. In this section:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":1411939,"text":"“purchase-money collateral” means goods or software that secures a purchase-money obligation incurred with respect to that collateral; and","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":1411940,"text":"“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.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"b"},"3":{"id":1411941,"text":"Purchase-money security interest in goods. A security interest in goods is a purchase-money security interest:","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a2","next_prefix":"b1"},"4":{"id":1411942,"text":"to the extent that the goods are purchase-money collateral with respect to that security interest;","type":"section","prefixes":["b","1"],"prefix":"1","entire_prefix":"b1","prefix_anchor":"b1","level":2,"prior_prefix":"b","next_prefix":"b2"},"5":{"id":1411943,"text":"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","type":"section","prefixes":["b","2"],"prefix":"2","entire_prefix":"b2","prefix_anchor":"b2","level":2,"prior_prefix":"b1","next_prefix":"b3"},"6":{"id":1411944,"text":"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.","type":"section","prefixes":["b","3"],"prefix":"3","entire_prefix":"b3","prefix_anchor":"b3","level":2,"prior_prefix":"b2","next_prefix":"c"},"7":{"id":1411945,"text":"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:","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b3","next_prefix":"c1"},"8":{"id":1411946,"text":"the debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and","type":"section","prefixes":["c","1"],"prefix":"1","entire_prefix":"c1","prefix_anchor":"c1","level":2,"prior_prefix":"c","next_prefix":"c2"},"9":{"id":1411947,"text":"the debtor acquired its interest in the software for the principal purpose of using the software in the goods.","type":"section","prefixes":["c","2"],"prefix":"2","entire_prefix":"c2","prefix_anchor":"c2","level":2,"prior_prefix":"c1","next_prefix":"d"},"10":{"id":1411948,"text":"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.","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c2","next_prefix":"e"},"11":{"id":1411949,"text":"Application of payment in nonconsumer-goods transaction. In a transaction other than a consumer-goods 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:","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d","next_prefix":"e1"},"12":{"id":1411950,"text":"in accordance with any reasonable method of application to which the parties agree;","type":"section","prefixes":["e","1"],"prefix":"1","entire_prefix":"e1","prefix_anchor":"e1","level":2,"prior_prefix":"e","next_prefix":"e2"},"13":{"id":1411951,"text":"in the absence of the parties’ agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or","type":"section","prefixes":["e","2"],"prefix":"2","entire_prefix":"e2","prefix_anchor":"e2","level":2,"prior_prefix":"e1","next_prefix":"e3"},"14":{"id":1411952,"text":"in the absence of an agreement to a reasonable method and a timely manifestation of the obligor’s intention, in the following order:","type":"section","prefixes":["e","3"],"prefix":"3","entire_prefix":"e3","prefix_anchor":"e3","level":2,"prior_prefix":"e2","next_prefix":"A"},"15":{"id":1411953,"text":"to obligations that are not secured; and","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"prior_prefix":"e3","next_prefix":"B"},"16":{"id":1411954,"text":"if more than one obligation is secured, to obligations secured by purchase-money security interests in the order in which those obligations were incurred.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"f"},"17":{"id":1411955,"text":"No loss of status of purchase-money security interest in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, a purchase-money security interest does not lose its status as such, even if:","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"B","next_prefix":"f1"},"18":{"id":1411956,"text":"the purchase-money collateral also secures an obligation that is not a purchase-money obligation;","type":"section","prefixes":["f","1"],"prefix":"1","entire_prefix":"f1","prefix_anchor":"f1","level":2,"prior_prefix":"f","next_prefix":"f2"},"19":{"id":1411957,"text":"collateral that is not purchase-money collateral also secures the purchase-money obligation; or","type":"section","prefixes":["f","2"],"prefix":"2","entire_prefix":"f2","prefix_anchor":"f2","level":2,"prior_prefix":"f1","next_prefix":"f3"},"20":{"id":1411958,"text":"the purchase-money obligation has been renewed, refinanced, consolidated, or restructured.","type":"section","prefixes":["f","3"],"prefix":"3","entire_prefix":"f3","prefix_anchor":"f3","level":2,"prior_prefix":"f2","next_prefix":"g"},"21":{"id":1411959,"text":"Burden of proof in nonconsumer-goods 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.","type":"section","prefixes":["g"],"prefix":"g","entire_prefix":"g","prefix_anchor":"g","level":1,"prior_prefix":"f3","next_prefix":"h"},"22":{"id":1411960,"text":"Nonconsumer-goods transactions; no inference. The limitation of the rules in subsections (e), (f), and (g) to transactions other than consumer-goods transactions is intended to leave to the court the determination of the proper rules in consumer-goods transactions. The court may not infer from that limitation the nature of the proper rule in consumer-goods transactions and may continue to apply established approaches.","type":"section","prefixes":["h"],"prefix":"h","entire_prefix":"h","prefix_anchor":"h","level":1,"prior_prefix":"g","next_prefix":"i"},"23":{"id":1411961,"text":"Goods covered by negotiable document. The attachment of a security interest in a negotiable document is also attachment of a security interest in the goods covered by the negotiable document.","type":"section","prefixes":["i"],"prefix":"i","entire_prefix":"i","prefix_anchor":"i","level":1,"prior_prefix":"h"}},"ancestry":[{"id":53766,"edition_id":2,"name":"Short Title, Definitions and General Concepts","identifier":"1","label":"subpart","depth":3,"order_by":1,"parent_id":53765,"metadata":{"child_laws":11,"child_structures":0},"date_created":"2026-08-02 03:21:54","date_modified":"2026-08-02 12:28:36","permalink":{"id":1510839,"object_type":"structure","relational_id":53766,"identifier":"1","token":"8.9A\/1\/1","url":"\/8.9A\/1\/1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53765,"edition_id":2,"name":"General Provisions","identifier":"1","label":"part","depth":2,"order_by":1,"parent_id":53764,"metadata":{"child_laws":13,"child_structures":2},"date_created":"2026-08-02 03:21:54","date_modified":"2026-08-02 12:28:36","permalink":{"id":1510837,"object_type":"structure","relational_id":53765,"identifier":"1","token":"8.9A\/1","url":"\/8.9A\/1\/","edition_id":2,"permalink":0,"preferred":1}},{"id":53764,"edition_id":2,"name":"Commercial Code \u2014 Secured Transactions","identifier":"8.9A","label":"title","depth":1,"order_by":30,"parent_id":null,"metadata":{"child_laws":153,"child_structures":20},"date_created":"2026-08-02 03:21:54","date_modified":"2026-08-02 12:28:36","permalink":{"id":1510835,"object_type":"structure","relational_id":53764,"identifier":"8.9A","token":"8.9A","url":"\/8.9A\/","edition_id":2,"permalink":0,"preferred":1}}],"structure_contents":[{"id":378354,"structure_id":53766,"section_number":"8.9A-101","catch_line":"Short title","url":"\/8.9A-101\/","token":"8.9A\/1\/1\/8.9A-101","metadata":false},{"id":378355,"structure_id":53766,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","url":"\/8.9A-102\/","token":"8.9A\/1\/1\/8.9A-102","metadata":false},{"id":378356,"structure_id":53766,"section_number":"8.9A-103","catch_line":"Purchase-money security interest; application of payments; burden of establishing","url":"\/8.9A-103\/","token":"8.9A\/1\/1\/8.9A-103","metadata":false},{"id":378357,"structure_id":53766,"section_number":"8.9A-104","catch_line":"Control of deposit account","url":"\/8.9A-104\/","token":"8.9A\/1\/1\/8.9A-104","metadata":false},{"id":378359,"structure_id":53766,"section_number":"8.9A-105","catch_line":"Control of electronic copy of record evidencing chattel paper","url":"\/8.9A-105\/","token":"8.9A\/1\/1\/8.9A-105","metadata":false},{"id":378358,"structure_id":53766,"section_number":"8.9A-105.1","catch_line":"Control of electronic money","url":"\/8.9A-105.1\/","token":"8.9A\/1\/1\/8.9A-105.1","metadata":false},{"id":378360,"structure_id":53766,"section_number":"8.9A-106","catch_line":"Control of investment property","url":"\/8.9A-106\/","token":"8.9A\/1\/1\/8.9A-106","metadata":false},{"id":378363,"structure_id":53766,"section_number":"8.9A-107","catch_line":"Control of letter-of-credit right","url":"\/8.9A-107\/","token":"8.9A\/1\/1\/8.9A-107","metadata":false},{"id":378361,"structure_id":53766,"section_number":"8.9A-107.1","catch_line":"Control of controllable electronic record, controllable account, or controllable payment intangible","url":"\/8.9A-107.1\/","token":"8.9A\/1\/1\/8.9A-107.1","metadata":false},{"id":378362,"structure_id":53766,"section_number":"8.9A-107.2","catch_line":"No requirement to acknowledge or confirm; no duties","url":"\/8.9A-107.2\/","token":"8.9A\/1\/1\/8.9A-107.2","metadata":{"court_decisions":""}},{"id":378364,"structure_id":53766,"section_number":"8.9A-108","catch_line":"Sufficiency of description","url":"\/8.9A-108\/","token":"8.9A\/1\/1\/8.9A-108","metadata":{"court_decisions":{"0":{"name":"In Re the Holladay House, Inc.","case_number":"07-34887","citation":"387 B.R. 689","date":"2008-03-14","url":"https:\/\/www.courtlistener.com\/opinion\/1926443\/in-re-the-holladay-house-inc\/","abstract":" .\u202f.\u202f. 387 B.R. 689 (2008) .\u202f.\u202f. ","court_html":"United States Bankruptcy Court, E.D. Virginia"}}}}],"previous_section":{"id":378355,"structure_id":53766,"section_number":"8.9A-102","catch_line":"Definitions and index of definitions","url":"\/8.9A-102\/","token":"8.9A\/1\/1\/8.9A-102","metadata":false},"next_section":{"id":378357,"structure_id":53766,"section_number":"8.9A-104","catch_line":"Control of deposit account","url":"\/8.9A-104\/","token":"8.9A\/1\/1\/8.9A-104","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.9A-103\/","history_text":"

This law was first created in 1964. The record of its establishment is cataloged in chapter 219 of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. Unfortunately, the 1964 \u201cActs\u201d aren\u2019t available online. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2000, chapter 1007<\/a>.<\/p>","references":false,"refers_to":false,"permalink":{"id":1510849,"object_type":"law","relational_id":378356,"identifier":"8.9A-103","token":"8.9A\/1\/1\/8.9A-103","url":"\/8.9A-103\/","edition_id":2,"permalink":0,"preferred":1},"url":"\/8.9A-103\/","token":"8.9A\/1\/1\/8.9A-103","dublin_core":{"Title":"Purchase-money security interest; application of payments; burden of establishing","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.9A-103","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> Definitions. In this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> “purchase-money collateral<\/span>” means goods or software that secures a purchase-money obligation<\/span> incurred with respect to that collateral; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> “purchase-money obligation<\/span>” 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<\/span> so used. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> Purchase-money security interest in goods. A security interest in goods is a purchase-money security interest: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> to the extent that the goods are purchase-money collateral<\/span> with respect to that security interest; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> if the security interest is in inventory that is or was purchase-money collateral<\/span>, also to the extent that the security interest secures a purchase-money obligation<\/span> incurred with respect to other inventory in which the secured party<\/span> holds or held a purchase-money security interest; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> also to the extent that the security interest secures a purchase-money obligation<\/span> incurred with respect to software in which the secured party<\/span> holds or held a purchase-money security interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> 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<\/span> incurred with respect to goods in which the secured party<\/span> holds or held a purchase-money security interest if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the debtor acquired its interest in the software in an integrated transaction in which it acquired an interest in the goods; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the debtor acquired its interest in the software for the principal purpose of using the software in the goods. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> Application of payment in nonconsumer-goods transaction. In a transaction other than a consumer-goods 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: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> in accordance with any reasonable method of application to which the parties agree; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> in the absence of the parties’ agreement to a reasonable method, in accordance with any intention of the obligor manifested at or before the time of payment; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> in the absence of an agreement to a reasonable method and a timely manifestation of the obligor’s intention, in the following order<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

A.<\/span> to obligations that are not secured; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> if more than one obligation is secured, to obligations secured by purchase-money security interests in the order<\/span> in which those obligations were incurred. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> No loss of status of purchase-money security interest in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, a purchase-money security interest does not lose its status as such, even if: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the purchase-money collateral<\/span> also secures an obligation that is not a purchase-money obligation<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> collateral that is not purchase-money collateral<\/span> also secures the purchase-money obligation<\/span>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> the purchase-money obligation<\/span> has been renewed, refinanced, consolidated, or restructured. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

g.<\/span> Burden of proof<\/span> in nonconsumer-goods transaction. In a transaction other than a consumer-goods transaction, a secured party<\/span> claiming a purchase-money security interest has the burden of establishing the extent to which the security interest is a purchase-money security interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

h.<\/span> Nonconsumer-goods transactions; no inference. The limitation of the rules in subsections (e), (f), and (g) to transactions other than consumer-goods transactions is intended to leave to the court<\/span> the determination of the proper rules in consumer-goods transactions. The court<\/span> may not infer from that limitation the nature of the proper rule in consumer-goods transactions and may continue to apply established approaches. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

i.<\/span> Goods covered by negotiable document. The attachment<\/span> of a security interest in a negotiable document is also attachment<\/span> of a security interest in the goods covered by the negotiable document. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nPURCHASE-MONEY SECURITY INTEREST; APPLICATION OF PAYMENTS; BURDEN OF\nESTABLISHING (\u00a7 8.9A-103)\n\na. Definitions. In this section:\n\n 1. “purchase-money collateral” means goods or software that\n secures a purchase-money obligation incurred with respect to that collateral;\n and\n\n 2. “purchase-money obligation” means an obligation of an obligor\n incurred as all or part of the price of the collateral or for value given to\n enable the debtor to acquire rights in or the use of the collateral if the\n value is in fact so used.\n\nb. Purchase-money security interest in goods. A security interest in goods is a\npurchase-money security interest:\n\n 1. to the extent that the goods are purchase-money collateral with respect to\n that security interest;\n\n 2. if the security interest is in inventory that is or was purchase-money\n collateral, also to the extent that the security interest secures a\n purchase-money obligation incurred with respect to other inventory in which\n the secured party holds or held a purchase-money security interest; and\n\n 3. also to the extent that the security interest secures a purchase-money\n obligation incurred with respect to software in which the secured party holds\n or held a purchase-money security interest.\n\nc. Purchase-money security interest in software. A security interest in software\nis a purchase-money security interest to the extent that the security interest\nalso secures a purchase-money obligation incurred with respect to goods in which\nthe secured party holds or held a purchase-money security interest if:\n\n 1. the debtor acquired its interest in the software in an integrated\n transaction in which it acquired an interest in the goods; and\n\n 2. the debtor acquired its interest in the software for the principal purpose\n of using the software in the goods.\n\nd. Consignor’s inventory purchase-money security interest. The security\ninterest of a consignor in goods that are the subject of a consignment is a\npurchase-money security interest in inventory.\n\ne. Application of payment in nonconsumer-goods transaction. In a transaction\nother than a consumer-goods transaction, if the extent to which a security\ninterest is a purchase-money security interest depends on the application of a\npayment to a particular obligation, the payment must be applied:\n\n 1. in accordance with any reasonable method of application to which the\n parties agree;\n\n 2. in the absence of the parties’ agreement to a reasonable method, in\n accordance with any intention of the obligor manifested at or before the time\n of payment; or\n\n 3. in the absence of an agreement to a reasonable method and a timely\n manifestation of the obligor’s intention, in the following order:\n\nA. to obligations that are not secured; and\n\nB. if more than one obligation is secured, to obligations secured by\npurchase-money security interests in the order in which those obligations were\nincurred.\n\nf. No loss of status of purchase-money security interest in nonconsumer-goods\ntransaction. In a transaction other than a consumer-goods transaction, a\npurchase-money security interest does not lose its status as such, even if:\n\n 1. the purchase-money collateral also secures an obligation that is not a\n purchase-money obligation;\n\n 2. collateral that is not purchase-money collateral also secures the\n purchase-money obligation; or\n\n 3. the purchase-money obligation has been renewed, refinanced, consolidated,\n or restructured.\n\ng. Burden of proof in nonconsumer-goods transaction. In a transaction other than\na consumer-goods transaction, a secured party claiming a purchase-money security\ninterest has the burden of establishing the extent to which the security\ninterest is a purchase-money security interest.\n\nh. Nonconsumer-goods transactions; no inference. The limitation of the rules in\nsubsections (e), (f), and (g) to transactions other than consumer-goods\ntransactions is intended to leave to the court the determination of the proper\nrules in consumer-goods transactions. The court may not infer from that\nlimitation the nature of the proper rule in consumer-goods transactions and may\ncontinue to apply established approaches.\n\ni. Goods covered by negotiable document. The attachment of a security interest\nin a negotiable document is also attachment of a security interest in the goods\ncovered by the negotiable document.\n\nHISTORY: 1964, c. 219, \u00a7 8.9-107; 2000, c. 1007.","edition":{"id":2,"name":"2026","slug":"2026","date_created":"2026-07-16 18:40:23","date_modified":"2026-08-02 15:14:36","current":1,"order_by":2,"last_import":"2026-08-02 12:37:30"}}