§ 9—325.
142 words·~1 min read·
/vt/9-53A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 9—325. 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 9—322(a) or section 9—324 of this title; or
(2)arose solely under subsection 2—711(3) or 2A—508(5) of this title. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)