27.4 Priority of Security Interests Paul High purchased various items of personal property and livestock from William and Marilyn McGowen . To secure the purchase price , High granted the Mc- Gowens a security interest in the personal property and livestock . Two and one-half months later , High borrowed $ 86,695 from Nebraska State Bank ( Bank ) and signed a promissory note , granting Bank a security interest in all his farm products , including but not limited to all his livestock . Bank immediately perfected its security agreement by filing a financing statement with the county clerk in Dakota County , Nebraska . The McGowens perfected their security interest by filing a financing statement and security agreement with the county clerk three months after the Bank filed its financing statement . Three years later , High defaulted on the obligations owed to the McGowens and Bank . Whose security interest has priority ? McGowen v . Nebraska State Bank , 229 Neb . 471 , 427 N . W . 2d 772 , Web 1988 Neb . Lexis 290 ( Supreme Court of Nebraska ) 27.5 Purchase Money Security Interest Prior Brothers , Inc . ( PBI ) began financing its farming operations through Bank of California , N . A . ( Bank ). Bank ’ s loans were secured by PBI ’ s equipment and after-acquired property . Bank immediately filed a financing statement , perfecting its security interest . Two years later , PBI contacted the International Harvester dealership in Sunny-side , Washington , about the purchase of a new tractor . A retail installment contract for a model 1066 International Harvester tractor was executed . PBI took delivery of the tractor ― on approval ,‖ agreeing that if it decided to purchase the tractor , it would inform the dealership of its intention and would send a $ 6,000 down payment . The dealership received a $ 6,000 check . The dealership immediately filed a financing statement concerning the tractor . Subsequently , when PBI went into receivership , the dealership filed a complaint , asking the court to declare that its purchase money security interest in the tractor had priority over Bank ’ s security interest . Does it ? In the Matter of Prior Brothers , Inc ., 29 Wn . App . 905 , 632 P . 2d 522 , Web 1981 Wash . App . Lexis 2507 ( Court of Appeals of Washington ) 27.7 Buyer in the Ordinary Course of Business Heritage Ford Lincoln Mercury , Inc . ( Heritage ) was in the business of selling new cars . Heritage entered into an agreement with Ford Motor Credit Company