§ 8.9A-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 § 8.9A-322 (a) or § 8.9A-324; or
(2) arose solely under § 8.2-711 (3) or § 8.2A-508 (5).
(2000, c. 1007.)Sections: Previous 8.9A-318 8.9A-319 8.9A-320 8.9A-321 8.9A-322 8.9A-323 8.9A-324 8.9A-325 8.9A-326 8.9A-327 8.9A-328 8.9A-329 8.9A-330 8.9A-331 8.9A-332 Next
Last modified: April 16, 2009