Code of Alabama
Ala. Code § 7-9-312 (2026)
Priorities Among Conflicting Security Interests in the Same Collateral.
✓ official Alabama Legislature (ALISON) text, current July 2026
Repealed by Act 2001-481, p. 647, § 4, effective January 1, 2002.
(Acts 1965, No. 549, p. 811; Acts 1979, No. 79-256, p. 390; Acts 1981, No. 81-312, p. 399; Acts 1995, No. 95-668, p. 1381, §4; Acts 1996, No. 96-742, p. 1241, §2.)
Notes of Decisions
Cited in 14
cases, 1979–2006 · leading case: Com. Union Bank v. John Deere Indus. Equip. Co., 387 So. 2d 787 (Ala. 1980).
Com. Union Bank v. John Deere Indus. Equip. Co., 387 So. 2d 787 (Ala. 1980). “The second issue which must be decided is whether John Deere's purchase money security interest in the JD550 crawler and the JD 3325 power winch should prevail over the bank's prior perfected security interest in the same collateral. Although American Forest Resources first…”
Mims v. First Citizens Bank, 913 So. 2d 1098 (Ala. Civ. App. 2005). “As correctly pointed out by the trial court in its judgment, former § 7-9-312 established the priorities among conflicting security interests in the same collateral.”
Orix Credit All., Inc. v. Bank of Tuscaloosa (In Re Brookwood Sand & Gravel, Inc.), 174 B.R. 309 (Bankr. N.D. Ala. 1994). “Code § 7-9-312 (4) to gain preemptive priority rights in the equipment.”
Southtrust Bank of Alabama, Nat'l Ass'n, Formerly Named Birmingham Trust Nat'l Bank v. Borg-Warner Acceptance Corp., a Corp., 760 F.2d 1240 (11th Cir. 1985). “Ala.Code § 7-9-312(3) (1975); O.C.G.A. § 11-9-312(3) (1981).”
AmSouth Bank, N.A. v. ORIX Credit All., Inc. (In Re Delta Resources, Inc.), 162 B.R. 562 (Bankr. N.D. Ala. 1993). “Code § 7-9-312(4) provides: (4) A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives…”
Citizens & S. Factors, Inc. v. Small Bus. Admin., 375 So. 2d 251 (Ala. 1979). “At issue is whether § 7-9-306 (5) or § 7-9-312 (5) of the Code of 1975 governs the priority of security interests in returned goods when the accounts purchaser expressly took a security interest in returned goods and was the first to file a financing statement with respect to…”
Ford Motor Credit Co. v. Troy Bank & Trust Co., 76 B.R. 836 (M.D. Ala. 1986). “Troy Bank argues that the court should apply the “first-to-file rule” of section 7-9-312(5) of the 1975 Alabama Code.”
Morgan v. Farmers & Merchants Bank, 856 So. 2d 811 (Ala. 2003). “*Page 817 "( l ) To a transfer of an interest in any deposit account (subsection (1) of Section 7-9-105), except as provided with respect to proceeds (Section 7-9-306) and priorities in proceeds (Section 7-9-312). . . ." Ala. Code 1975, § 7-9-105(1)(e) and (i): " Definitions and…”
Lee v. Davis/McGraw, Inc. (In Re Lee), 169 B.R. 790 (Bankr. S.D. Ga. 1994). “§ 11-9-312(3); Ala.Code § 7-9-312(3). 5 . This approach is in accord with the recognition that the dual status rule is simply a qualification of the transformation rule.”
Financeamerica Private Brands, Inc. v. Bishop (In Re Bishop), 52 B.R. 470 (Bankr. N.D. Ala. 1985). “That section provides: Section 7-9-312. Priorities among conflicting security interests in the same collateral.”
Morris v. Ford Motor Credit Co., Inc., 612 So. 2d 1212 (Ala. Civ. App. 1992). “In its memorandum in support of its motion for writ of seizure, Ford Motor Credit claimed that its purchase money security interest pursuant to § 7-9-312(4), Code 1975, had priority over any security interest that Morris could have under § 7-2-711 (3), Code 1975.”
Davis-Hunt Cotton Co., Inc. v. Bank Indep., 541 So. 2d 5 (Ala. 1989). “A financing statement covering crops growing or to be grown must show that it is to be cross-indexed in the real estate *7 mortgage records where the debtor is located and must show the name of the record owner of the real estate (if not the debtor), to aid the credit searcher…”
— Ala. Code § 7-9-312(3) — 2 cases
Southtrust Bank of Alabama, Nat'l Ass'n, Formerly Named Birmingham Trust Nat'l Bank v. Borg-Warner Acceptance Corp., a Corp., 760 F.2d 1240 (11th Cir. 1985). “Ala.Code § 7-9-312(3) (1975); O.C.G.A. § 11-9-312(3) (1981).”
Lee v. Davis/McGraw, Inc. (In Re Lee), 169 B.R. 790 (Bankr. S.D. Ga. 1994). “§ 11-9-312(3); Ala.Code § 7-9-312(3). 5 . This approach is in accord with the recognition that the dual status rule is simply a qualification of the transformation rule.”
— Ala. Code § 7-9-312(4) — 4 cases
AmSouth Bank, N.A. v. ORIX Credit All., Inc. (In Re Delta Resources, Inc.), 162 B.R. 562 (Bankr. N.D. Ala. 1993). “Code § 7-9-312(4) provides: (4) A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives…”
Orix Credit All., Inc. v. Bank of Tuscaloosa (In Re Brookwood Sand & Gravel, Inc.), 174 B.R. 309 (Bankr. N.D. Ala. 1994). “Code § 7-9-312 (4) to gain preemptive priority rights in the equipment.”
Morris v. Ford Motor Credit Co., Inc., 612 So. 2d 1212 (Ala. Civ. App. 1992). “In its memorandum in support of its motion for writ of seizure, Ford Motor Credit claimed that its purchase money security interest pursuant to § 7-9-312(4), Code 1975, had priority over any security interest that Morris could have under § 7-2-711 (3), Code 1975.”
Jackson v. State, 953 So. 2d 1286 (Ala. Crim. App. 2006).
— Ala. Code § 7-9-312(5) — 6 cases
Orix Credit All., Inc. v. Bank of Tuscaloosa (In Re Brookwood Sand & Gravel, Inc.), 174 B.R. 309 (Bankr. N.D. Ala. 1994). “Code § 7-9-312 (4) to gain preemptive priority rights in the equipment.”
Ford Motor Credit Co. v. Troy Bank & Trust Co., 76 B.R. 836 (M.D. Ala. 1986). “Troy Bank argues that the court should apply the “first-to-file rule” of section 7-9-312(5) of the 1975 Alabama Code.”
AmSouth Bank, N.A. v. ORIX Credit All., Inc. (In Re Delta Resources, Inc.), 162 B.R. 562 (Bankr. N.D. Ala. 1993). “Code § 7-9-312(4) provides: (4) A purchase money security interest in collateral other than inventory has priority over a conflicting security interest in the same collateral or its proceeds if the purchase money security interest is perfected at the time the debtor receives…”
Citizens & S. Factors, Inc. v. Small Bus. Admin., 375 So. 2d 251 (Ala. 1979). “At issue is whether § 7-9-306 (5) or § 7-9-312 (5) of the Code of 1975 governs the priority of security interests in returned goods when the accounts purchaser expressly took a security interest in returned goods and was the first to file a financing statement with respect to…”
Davis-Hunt Cotton Co., Inc. v. Bank Indep., 541 So. 2d 5 (Ala. 1989). “A financing statement covering crops growing or to be grown must show that it is to be cross-indexed in the real estate *7 mortgage records where the debtor is located and must show the name of the record owner of the real estate (if not the debtor), to aid the credit searcher…”
— Ala. Code § 7-9-312(5)(a) — 1 case
Financeamerica Private Brands, Inc. v. Bishop (In Re Bishop), 52 B.R. 470 (Bankr. N.D. Ala. 1985). “That section provides: Section 7-9-312. Priorities among conflicting security interests in the same collateral.”
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