Priority of Security Interests in Transferred Collateral

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Secured Transactions
  5. Perfection and Priority
  6. Priority of Security Interests in Transferred Collateral

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  1. Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b) of this Code section, 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.
  2. Limitation of subsection (a) of this Code section subordination. Subsection (a) of this Code section subordinates a security interest only if the security interest:
    1. Otherwise would have priority solely under subsection (a) of Code Section 11-9-322 or Code Section 11-9-324; or
    2. Arose solely under subsection (3) of Code Section 11-2-711 or subsection (5) of Code Section 11-2A-508.

(Code 1981, §11-9-325, enacted by Ga. L. 2001, p. 362, § 1.)

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 9-325.


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