57A-9-325. Subordination of security interest created by debtor to security interest created by another person.

(a) 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) Subsection (a) subordinates a security interest only if the security interest:

(1)    Otherwise would have priority solely under § 57A-9-322(a) or 57A-9-324; or

(2)    Arose solely under § 57A-2-711(3) or 57A-2A-508(5).

Source: SL 2000, ch 231.