3.303 [Debt Secured by Cross-Collateral]

(1) If debts arising from two or more consumer credit sales, . . . are secured by cross collateral (Section 3.302) or consolidated into one debt payable on a single schedule of payments, and the debt is secured by security interests taken with respect to one or more of the sales, payments received by the seller after the taking of cross-collateral or the consolidation are deemed, for the purpose of determining the amount of the debt secured by the various security interests, to have been applied first to the payment of the debts arising from the sales first made. To the extent debts are paid according to this section, security interests in items of property terminate as the debt originally incurred with respect to each item is paid.

(2) [Omitted.]

(3) [Omitted.]