(1) Commingled goods shall be those goods that are
physically mixed up with other goods in such a manner that their identity is lost
in a product or mass.
(2) A security interest may not be created in commingled goods.
However, a security interest may be attached to a product or mass that results
when goods become commingled goods.
(3) Where collateral becomes commingled goods, a security interest
shall be attached to the product or mass.
(4) Where a security interest in collateral is matured before the
collateral becomes commingled goods, the security interest that is attached to
the product or mass may be matured despite that a notice is not filed. The
priority of the security interest in the product or mass shall be measured from
the time of maturity of the security interest in the collateral that became
commingled.
(5) Where more than one security interest is attached to the product
or mass of commingled goods, priority shall be determined as follows:
(a) A security interest that is matured at the time when the collateral
becomes commingled goods shall have priority over a security
interest that is unmatured at the time when the collateral becomes
commingled goods;
(b) The first security interest attached to the product or mass shall
have priority over the unmatured security interests; and
(c) Where more than one security interest is matured, the security
interests shall rank equally in proportion to the value of the
collateral at the time when it becomes commingled goods.