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 subsection 9—322(a) or section 9—324 of this title; or (2) arose solely under subsection 2—711(3) or 2A—508(5) of this title. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)
Vermont Legal Code