New York Uniform Commercial Code Law Section 9-325 - Priority of Security Interests in Transferred Collateral

Section 9--325. Priority    of   Security   Interests   in   Transferred
                Collateral.
(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:
     (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) Limitation  of  subsection  (a)  subordination.   Subsection   (a)
  subordinates a security interest only if the security interest:
     (1) otherwise  would have priority solely under Section 9--322(a)
         or 9--324; or
     (2) arose solely under Section 2--711(3) or 2-A-508(5).

Last modified: February 3, 2019