Section 39
Accessions
(1) Where goods are physically united with other goods in such a
manner that the identity of the original goods is not lost, such goods shall be deemed
to have been acceded to such original goods.
(2) A security interest may also be created in an accession, and such
security interest shall also continue in collateral that becomes an accession. If a
security interest is matured when the collateral becomes an accession, the
security interest shall be deemed to have been matured also in the case of the
accession.
(3) In the event of default in the discharge of secured obligation, a
security holder may remove an accession from other goods if the security
interest in the accession has priority over the claims of every person having an
interest in the whole.
(4) A security holder that removes an accession shall make prompt
reimbursement, as follows, to the holder, other than the security giver, of any interest
in the whole or the other goods whose interest is superior to that of the security holder
for the cost of repair of any physical loss of and damage to the whole:
(a) A security holder that removes accessions shall promptly reimburse
any mortgagee other than the security giver for the cost of repair of
any loss and damage to the immovable property.
(b) The security holder shall reimburse the security giver or other
security holder for any diminution in value caused by the absence of
the goods removed or by any necessity for replacing such goods.
(c) A person entitled to reimbursement may refuse to give permission to
remove such goods until the security holder gives adequate assurance
for the performance of the obligation to reimburse.
manner that the identity of the original goods is not lost, such goods shall be deemed
to have been acceded to such original goods.
(2) A security interest may also be created in an accession, and such
security interest shall also continue in collateral that becomes an accession. If a
security interest is matured when the collateral becomes an accession, the
security interest shall be deemed to have been matured also in the case of the
accession.
(3) In the event of default in the discharge of secured obligation, a
security holder may remove an accession from other goods if the security
interest in the accession has priority over the claims of every person having an
interest in the whole.
(4) A security holder that removes an accession shall make prompt
reimbursement, as follows, to the holder, other than the security giver, of any interest
in the whole or the other goods whose interest is superior to that of the security holder
for the cost of repair of any physical loss of and damage to the whole:
(a) A security holder that removes accessions shall promptly reimburse
any mortgagee other than the security giver for the cost of repair of
any loss and damage to the immovable property.
(b) The security holder shall reimburse the security giver or other
security holder for any diminution in value caused by the absence of
the goods removed or by any necessity for replacing such goods.
(c) A person entitled to reimbursement may refuse to give permission to
remove such goods until the security holder gives adequate assurance
for the performance of the obligation to reimburse.