Cross-Collateral

(1)In addition to contracting for a security interest in the goods sold, a seller of goods in a consumer credit sale may secure the debt arising from the sale by:

(a)contracting for a security interest in goods previously sold to the buyer by the seller if there is an existing security interest in the goods held either by the seller or his transferee; and

(b)contracting at the time of a subsequent sale to the buyer for a security interest in the goods sold in the subsequent sale as security for the previous debt.

(2)The security interest described in subsections

(a)and

(b)ceases COL120106 CH. 2 CREDIT SALES when the debt arising from the original sale of the collateral to the debtor has been paid.