Georgia § 11-9-325 Priority of security interests in transferred collateral

Georgia Statutes

§ 11-9-325 — Priority of security interests in transferred collateral

(a)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.

(b)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 Sect

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(a) 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. (b) 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 .

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