Maryland Commercial Law Section 9-325

Article - Commercial Law

§ 9-325.

      (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 § 9-322(a) or § 9-324; or

            (2)      Arose solely under § 2-711(3) or § 2A-508(5) of this article.



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