4-9-325. Priority of security interests in transferred collateral.
117 words·~1 min read·
/co/title-4-uniform-commercial-code/article-9-secured-transactions/4-9-325·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(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 section 4-9-322
(a)or 4-9-324; or
(2)Arose solely under section 4-2-711
(3)or 4-2.5-508 (5).