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

Alabama Statutes

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

Alabama·Title 7 Commercial Code·Art. 9A Secured Transactions·Div. 3 Priority·Part 3 Perfection and Priority

(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).

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