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Texas Business & Commerce Code - Section 9.326. Priority Of Security Interests Created By New Debtor

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 9.326. Priority Of Security Interests Created By New Debtor

§ 9.326. PRIORITY OF SECURITY INTERESTS CREATED BY NEW 
DEBTOR.  (a) Subject to Subsection (b), a security interest created 
by a new debtor that is perfected by a filed financing statement 
that is effective solely under Section 9.508 in collateral in which 
a new debtor has or acquires rights is subordinate to a security 
interest in the same collateral that is perfected other than by a 
filed financing statement that is effective solely under Section 
9.508.
	(b)  The other provisions of this subchapter determine the 
priority among conflicting security interests in the same 
collateral perfected by filed financing statements that are 
effective solely under Section 9.508.  However, if the security 
agreements to which a new debtor became bound as debtor were not 
entered into by the same original debtor, the conflicting security 
interests rank according to priority in time of the new debtor's 
having become bound.

Added by Acts 1999, 76th Leg., ch. 414, § 1.01, eff. July 1, 
2001.       

Last modified: August 11, 2007