(1) An acquisition security interest in equipment, or in intellectual property or the right of a licensee under a licence of intellectual property primarily used or intended to be used by the grantor in the operation of its business, has priority over a competing security interest created by the grantor that is not an acquisition security interest, if —
(a) the secured creditor with an acquisition security interest is in possession of the equipment; or
(b) a registered notice with respect to the acquisition security interest is in the Register before the expiry of 20 days after the grantor obtains possession of the equipment or the agreement for the sale or licence of the intellectual property to the grantor has been concluded.
(2) An acquisition security interest in inventory, or in intellectual property or the rights of a licensee under a licence of intellectual property held by the grantor for sale or licence in the ordinary course of the business of the grantor, has priority over a competing non-acquisition security interest created by the grantor, if —
(a) the secured creditor with an acquisition security interest is in possession of the inventory; or
(b) before the grantor obtains possession of the inventory or the agreement for the sale or licence of the intellectual property to the grantor has been concluded —
(i) a notice with respect to the acquisition security interest is registered in the Register, and
(ii) a secured creditor that has a registered notice in the Register with respect to a non-acquisition security interest created by the grantor in movable property of the same kind receives a notification from the acquisition secured creditor stating that it has or intends to obtain an acquisition security interest in the movable property described in the notification and describes the movable property so as to reasonably allow its identification.
(3) An acquisition security interest in consumer goods, or in intellectual property or the rights of a licensee under a licence of intellectual property primarily used or intended to be used by the grantor for personal, family or household purposes, has priority over a competing non-acquisition security interest created by the grantor.
(4) A notification sent under subsection (2)(b)(ii) —
(a) may cover acquisition security interests under multiple transactions between the same parties without the need to identify each transaction; and
(b) is sufficient only for security interests in inventory of which the grantor obtains possession, or intellectual property or rights of a licensee under a licence of intellectual property held by the grantor for sale or licence in the ordinary course of the business of the grantor which the grantor acquires, not later than 5 years after the notification is received.