§12A-1-9-325. Priority of security interests in transferred
151 words·~1 min read·
/ok/title-12a-uniform-commercial-code/12a-1-9-325·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
collateral.
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.