(a) Subordination of security interest in transferred collateral. 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:\n(1) the debtor acquired the collateral subject to the security interest created by the other person;\n(2) the security interest created by the other person was perfected when the debtor acquired the collateral; and\n(3) there is no period thereafter when the security interest is unperfected.\n(b) Limitation of subsection (a) subordination. Subsection (a) subordinates a security interest only if the security interest:\n(1) otherwise would have priority solely under § 8.9A-322 (a) or § 8.9A-324; or\n(2) arose solely under § 8.2-711 (3) or § 8.2A-508 (5).\n2000, c. 1007.
Virginia Legal Code