70A-9a-325 - Priority of security interests in transferred collateral.
70A-9a-325. Priority of security interests in transferred collateral.
(1) Except as otherwise provided in Subsection (2), a security interest created by a debtoris subordinate to a security interest in the same collateral created by another person if:
(a) the debtor acquired the collateral subject to the security interest created by the otherperson;
(b) the security interest created by the other person was perfected when the debtoracquired the collateral; and
(c) there is no period thereafter when the security interest is unperfected.
(2) Subsection (1) subordinates a security interest only if the security interest:
(a) otherwise would have priority solely under Subsection 70A-9a-322(1) or Section70A-9a-324; or
(b) arose solely under Subsection 70A-2-711(3) or 70A-2a-508(5).
Enacted by Chapter 252, 2000 General Session