Section 9--325. Priority of Security Interests in Transferred Collateral  


Latest version.
  • (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 9--322(a)
                 or 9--324; or
             (2) arose solely under Section 2--711(3) or 2-A-508(5).