Statutes > Wisconsin Statutes > Chapter 409. Uniform commercial code--secured transactions. > 409.325 Priority of security interests in transferred collateral.

409.325 Priority of security interests in transferred collateral.

409.325

409.325 Priority of security interests in transferred collateral.

409.325(1)

(1) Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

409.325(1)(a)

(a) The debtor acquired the collateral subject to the security interest created by the other person;

409.325(1)(b)

(b) The security interest created by the other person was perfected when the debtor acquired the collateral; and

409.325(1)(c)

(c) There is no period thereafter when the security interest is unperfected.

409.325(2)

(2) Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest:

409.325(2)(a)

(a) Otherwise would have priority solely under s. 409.322 (1) or 409.324; or

409.325(2)(b)

(b) Arose solely under s. 402.711 (3) or 411.508 (5).

409.325 - ANNOT.

History: 2001 a. 10.