Section 75-9-325 - 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 75-9-322(a) or 75-9-324; or(2) Arose solely under Section 75-2-711(3) or 75-2A-508(5). Laws, 2001, ch. 495, § 1, eff. 1/1/2002.