(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 36-9-322(a) or 36-9-324; or (2) arose solely under Section 36-2-711(3) or 36-2A-508(5). HISTORY: 2001 Act No. 67, Section 12.
South Carolina Legal Code