§9-1325. Priority of security interests in transferred collateral
209 words·~1 min read·
/me/title-11-uniform-commercial-code/9-1325A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1). Except as otherwise provided in subsection
(2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
(a). The debtor acquired the collateral subject to the security interest created by the other person; [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). The security interest created by the other person was perfected when the debtor acquired the collateral; and [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(c). There is no period thereafter when the security interest is unperfected. [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
[PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(2). Subsection
(1)subordinates a security interest only if the security interest:
(a). Otherwise would have priority solely under section 9‑1322, subsection
(1)or section 9‑1324 ; or [PL 1999, c. 699, Pt. A, §2 (NEW); PL 1999, c. 699, Pt. A, §4 (AFF).]
(b). Arose solely under section 2‑711, subsection
(3)or section 2‑1508 . [PL 2001, c. 286, §2 (AMD).]
[PL 2001, c. 286, §2 (AMD).]