Alabama § 7-9A-325 Priority of Security Interests in Transferred Collateral

Alabama Statutes

§ 7-9A-325 — Priority of Security Interests in Transferred Collateral

Alabama § 7-9A-325

JurisdictionAlabama

Title 7Commercial Code

Art. 9ASecured Transactions

Div. 3Priority

Part 3Perfection and Priority

This text of Alabama § 7-9A-325 (Priority of Security Interests in Transferred Collateral) is published on Counsel Stack Legal Research, covering Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ala. Code § 7-9A-325 (2026).

Text

(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 7-9A-322(a) or 7-9A-324; or

(2)arose solely under Section 7-2-711(3) or 7-2A-508(

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(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 7-9A-322(a) or 7-9A-324; or
(2) arose solely under Section 7-2-711(3) or 7-2A-508(5).