TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 9

SECURED TRANSACTIONS

PART 3.

PERFECTION AND PRIORITY

28-9-325.  Priority of security interests in transferred collateral. (a) Except as otherwise provided in subsection (b) of this section, 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) of this section subordinates a security interest only if the security interest:

(1)  Otherwise would have priority solely under section 28-9-322(a) or 28-9-324; or

(2)  Arose solely under section 28-2-711(3) or 28-12-508(5).

History:

[28-9-325, added 2001, ch. 208, sec. 2, p. 748.]