Section 4-9-325 - 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 section 4-9-322(a) or 4-9-324; or(2) Arose solely under section 4-2-711(3) or 4-2.5-508(5).L. 2001: Entire article R&RE, p. 1362, § 1, effective July 1.