2017 New York Laws
UCC - Uniform Commercial Code
Article 9 - Secured Transactions
Part 3 - Perfection and Priority
Sub Part 3 - Priority
9-325 - Priority of Security Interests in Transferred Collateral
Section 9--325. Priority of Security Interests in TransferredCollateral.
(a) Subordination of security interest in transferred collateral. 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) Limitation of subsection (a) subordination. Subsection (a) subordinates a security interest only if the security interest:
(1) otherwise would have priority solely under Section 9--322(a)
or 9--324; or
(2) arose solely under Section 2--711(3) or 2-A-508(5).
