Commingled Goods. If Collateral subsequently becomes part of a product or mass to which the security interest of another secured party attaches, then the Security shall continue in such product or mass and extend to all Accounts, Replacements or Proceeds arising from any dealing with such product or mass, ranking in priority to those Liens of any other person holding a Lien upon such product or mass. The Company shall not grant or permit to subsist any Lien in favour of any other creditor in goods that become part of any such product or mass, unless that creditor first agrees to the subordination of its interest to that of the Collateral Agent in all Accounts, Replacements and Proceeds arising from dealings with such product or mass, and the Company shall use commercially reasonable best efforts to obtain the consent of each existing such creditor to the rights granted to the Collateral Agent in this Section 2.13.
Commingled Goods. If any Collateral subsequently becomes part of a product or mass to which the security interest of another secured party attaches, "the cost of the total product or mass" within the meaning of Section 37 of the PPSA shall not exceed the sum of the cost of such Collateral and the cost of all other goods forming part of such product or mass in which other secured parties have a security interest. The Security Interests shall extend to all Accounts, Replacements or Proceeds arising from any dealing with such product or mass, ranking in priority to those of any other Person holding a Lien upon such product or mass.
Commingled Goods. If the Collateral subsequently becomes part of a product or mass to which the security interest of another secured party attaches, the Security Interest will extend to all accounts, Replacements, or proceeds arising from any dealing with such product or mass.
Commingled Goods. If Collateral Property subsequently becomes part of a product or mass to which the security interest of another secured party attaches, “the cost of the total product or mass” within the meaning of section 37 of the PPSA shall not exceed the sum of the cost of such Collateral Property and the cost of all other goods forming part of such product or mass in which other secured parties have a security interest. Notwithstanding any limitation imposed by the PPSA on the Security in such product or mass and subject to any Permitted Encumbrances, the Security shall extend to all Accounts, Replacements or Proceeds arising from any dealing with such product or mass, ranking in priority to those of any other person holding an Encumbrance upon such product or mass. The DM_MTL/017234.00001/2987689.3 - 9 - Corporation shall not grant or permit to subsist any Encumbrance (other than a Permitted Encumbrance) in favour of any other creditor unless that creditor first agrees to the subordination of its Encumbrance to that of the Lender in all Accounts, Replacements and Proceeds arising from dealings with a product or mass, and the Corporation shall use commercially reasonable efforts to obtain the consent of each existing secured creditor to the rights granted to the Lender in this Section 3.10.
Commingled Goods. D. UNCITRAL Comparison . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Commingled Goods. (UCC §9-336) As noted above, Commingled Goods, unlike Accessions, are goods which are combined with other goods in such a way that their identity is lost in a product or mass. An example is ball bearings. In the first instance, a security interest does not exist in commingled goods even though a security interest can attach to the mass or the product that results when goods become commingled. If a security interest is obtained and attaches to goods which become commingled, the security interest attaches to the mass or product to which the collateral becomes commingled. An example of the latter is bread flour which becomes part of a loaf of bread. Similarly, if a security interest is perfected in goods which become commingled, then the security interest is perfected in the mass or product to which the collateral becomes commingled. As to priority of competing security interests, a security interest perfected in goods before they commingle has priority over a security interest unperfected at the time the collateral becomes commingled. If more than one security interest is perfected before the collateral becomes commingled, then the security interests rank equal in proportion to the amount of debt secured to the value of the collateral at the time of commingling. Except for these special rules, priority is determined by the perfection rules of Article 9.
