§ 9-325. Priority of security interests in transferred collateral.
122 words·~1 min read·
/de/title-6/chapter-9/9-325A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Subordination of security interest in transferred collateral. — Except as otherwise provided in subsection (b), 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)Limitation of subsection
(a)subordination. — Subsection
(a)subordinates a security interest only if the security interest:
(1)otherwise would have priority solely under Section 9-322(a) or 9-324; or
(2)arose solely under Section 2-711(3) or 2A-508(5).