New Jersey § 12A:9-325 Priority of security interests in transferred collateral.

New Jersey Statutes

§ 12A:9-325 — Priority of security interests in transferred collateral.

New Jersey § 12A:9-325

Title 12ACOMMERCIAL TRANSACTIONS

This text of New Jersey § 12A:9-325 (Priority of security interests in transferred collateral.) is published on Counsel Stack Legal Research, covering New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.J. Stat. Ann. § 12A:9-325 (2026).

Text

12A:9-325. Priority of Security Interests in Transferred Collateral.

(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 12A:9-322 (a) or 12A:

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12A:9-325. Priority of Security Interests in Transferred Collateral. (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 12A:9-322 (a) or 12A:9-324; or (2) arose solely under 12A:2-711(3) or 12A:2A-508(5). L.2001, c.117, s.1; amended 2001, c.386, s.41.