Section 11-9-325 - Priority of security interests in transferred collateral

(a)Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b) of this Code 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)Limitation of subsection (a) of this Code section subordination. Subsection (a) of this Code section subordinates a security interest only if the security interest: (1) Otherwise would have priority solely under subsection (a) of Code Section 11-9-322 or Code Section 11-9-324; or(2) Arose solely under subsection (3) of Code Section 11-2-711 or subsection (5) of Code Section 11-2A-508.Added by 2001 Ga. Laws 191, § 1, eff. 7/1/2001.