§ 12A-1-9-325. Priority of security interests in transferred collateral.  


Latest version.
  • PRIORITY OF SECURITY INTERESTS IN TRANSFERRED COLLATERAL

    (a)  Except as otherwise provided in subsection (b) of this section, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

    (1)  the debtor acquired the collateral subject to the security interest created by the other person;

    (2)  the security interest created by the other person was perfected when the debtor acquired the collateral; and

    (3)  there is no period thereafter when the security interest is unperfected.

    (b)  Subsection (a) of this section subordinates a security interest only if the security interest:

    (1)  otherwise would have priority solely under subsection (a) of Section 1-9-322 or Section 1-9-324 of this title; or

    (2)  arose solely under paragraph (3) of Section 2-711 or paragraph (5) of Section 2A-508 of this title.

Added by Laws 2000, c. 371, § 52, eff. July 1, 2001.