409.325 Priority of security interests in transferred collateral.
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/wi/chapter-409/409-325A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
409.325 Priority of security interests in transferred collateral.
(1)Subordination of security interest in transferred collateral. Except as otherwise provided in sub.
(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)Limitation of sub.
(1)subordination. Subsection
(1)subordinates a security interest only if the security interest:
(a)Otherwise would have priority solely under s. 409.322
(1)or 409.324 ; or
(b)Arose solely under s. 402.711
(3)or 411.508
(5).