§ 25-9-325. Priority of security interests in transferred collateral.
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§ 25-9-325. Priority of security interests in transferred collateral.
(a)Subordination of security interest in transferred collateral. - 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)Limitation of subsection
(a)subordination. - Subsection
(a)of this section subordinates a security interest only if the security interest:
(1)Otherwise would have priority solely under G.S. 25-9-322(a) or G.S. 25-9-324; or
(2)Arose solely under G.S. 25-2-711(c) or G.S. 25-2A-508(e). (2000-169, s. 1; 2025-25, s. 112.)