Written by attorneys · grounded in primary & secondary sources — see below
Goods that are physically united with other goods in such a manner that the identity of the original goods is not lost. A security interest may be created in an accession and continues in collateral that becomes an accession. If the security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral.
Sources & Authorities
How it applies
Common Examples
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MRI Coil Installation Dispute
Black Medical granted Pacific Patient a security interest in its MRI machine and later purchased a specialized coil from Lake Clinical under a separate agreement granting Lake Clinical a security interest in the coil alone. Technicians bolted the coil into the machine using existing brackets without damaging either item or destroying the coil's separate identity. After default, Lake Clinical claims priority in the coil as an accession. The security interest created in the coil continues despite attachment to the machine.
Assembly Line Robotic Arm
Southern Precision purchased a robotic arm from Blue Works under a purchase-money security agreement and Blue Works perfected by filing before installation. The arm was later welded into the assembly line. After default, Blue Works asserts its interest in the arm. Because the security interest was perfected at the time the arm became an accession, the interest remains perfected in the arm.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
Hornbooks
Study Supplements
Turbine Blade Integration
Noon Solar purchased specialized turbine blades from Omega Electric and granted Omega a perfected security interest in the blades alone. The blades were bolted onto hubs already encumbered by Brook Renewable's earlier lien. After default, Omega claims its interest continues in the blades. The blades retain their identity as accessions even after mechanical integration with the hubs.
Sound System Mounting on Van
Crown Alliance purchased a modular sound system from Lake Community under a security agreement and Lake Community perfected by filing. The system was mounted onto a van subject to Crest Council's prior certificate-of-title lien. After default, Lake Community's interest in the equipment continues as an accession to the van but is subordinate to the title lien.
Common questions
Frequently Asked
4
What happens to a security interest when collateral becomes an accession?+
A security interest may be created in an accession and continues in collateral that becomes an accession. The interest survives attachment to a larger good provided the original goods retain their identity.
Supporting sources
Does perfection continue after goods become an accession?+
If a security interest is perfected when the collateral becomes an accession, the security interest remains perfected in the collateral. No new filing is required to maintain perfection status.
Supporting sources
How is priority determined between a security interest in an accession and an interest in the whole?+
Priority is determined by the other provisions of Part 3 of Article 9. A special subordination rule applies when the whole is subject to a certificate-of-title statute, but otherwise general priority rules govern.
Supporting sources
What factors determine whether goods qualify as an accession rather than fixtures?+
Accessions involve goods physically united with other goods without loss of identity. Fixtures arise when goods become so related to real property that an interest arises under real property law. The distinction turns on whether the union is goods-to-goods or goods-to-realty.
Supporting sources
569 N.E.2d 426 (N.Y. 1991)Property
…It was donated to the museum in 1937 by Solomon R. Guggenheim. The museum keeps track of its collection through the use of “accession cards,” which indicate when individual pieces leave the museum on loan, when they are returned and when they are transferred between the museum and storage. The museum lent the painting to…