Arkansas Code § 4-9-325 - Priority of Security Interests in Transferred Collateral

(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 § 4-9-322(a) or § 4-9-324; or

(2) arose solely under § 4-2-711(3) or § 4-2A-508(5).

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Last modified: November 15, 2016