57A-9-325. Subordination of security interest created by debtor to security interest created by another person.
109 words·~1 min read·
/sd/title-57/chapter-57-9/57a-9-325A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)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)Subsection
(a)subordinates a security interest only if the security interest:
(1)Otherwise would have priority solely under § 57A-9-322(a) or 57A-9-324 ; or
(2)Arose solely under § 57A-2-711(3) or 57A-2A-508(5).