409.325 Priority of security interests in transferred collateral. (1) Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:(a) The debtor acquired the collateral subject to the security interest created by the other person;(b) The security interest created by the other person was perfected when the debtor acquired the collateral; and(c) There is no period thereafter when the security interest is unperfected.(2) Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest:(a) Otherwise would have priority solely under s. 409.322 (1) or 409.324; or(b) Arose solely under s. 402.711 (3) or 411.508 (5).History: 2001 a. 10.
Wisconsin Legal Code