70A-9a-325. Priority of security interests in transferred collateral.
128 words·~1 min read·
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70A-9a-325. Priority of security interests in transferred collateral.
(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;
(b)the security interest created by the other person was perfected when the debtor acquired the collateral; and
(c)there is no period thereafter when the security interest is unperfected.
(2)Subsection
(1)subordinates a security interest only if the security interest:
(a)otherwise would have priority solely under Subsection 70A-9a-322(1) or Section 70A-9a-324 ; or
(b)arose solely under Subsection 70A-2-711(3) or 70A-2a-508(5) .
Enacted by Chapter 252 , 2000 General Session