§ 490-9-325

§490:9-325 Priority of security interests in transferred collateral. (a) 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) Subsection (a) subordinates a security interest only if the security interest: (1) Otherwise would have priority solely under section 490:9-322(a) or 490:9-324; or (2) Arose solely under section 490:2-711(3) or 490:2A-508(e). [L 2000, c 241, pt of §1]