§ 9325. Priority of security interests in transferred collateral.
160 words·~1 min read·
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§ 9325. Priority of security interests in transferred collateral.
(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 9322(a) (relating to general priority rules) or 9324 (relating to priority of purchase-money security interests); or
(2)arose solely under section 2711(c) (relating to security interest of buyer in rejected goods) or 2A508(e) (relating to security interest in goods in lessee's possession).
13c9326s