Pennsylvania § 9325 Priority of security interests in transferred collateral

Pennsylvania Statutes

§ 9325 — Priority of security interests in transferred collateral

Pennsylvania·Title 13 COMMERCIAL CODE·Ch. 93 PERFECTION AND PRIORITY·Subch. 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 9322(a) (relating to general priority rules) or 9324 (relating to priority

Free access — add to your briefcase to read the full text and ask questions with AI

(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 9322(a) (relating to general priority rules) or 9324 (relating to priority of purchase-money security interests); or

(2) arose solely under section 2711(c) (relating to security interest of buyer in rejected goods) or 2A508(e) (relating to security interest in goods in lessee's possession).

Pennsylvania § 9325 (Priority of security interests in transferred collateral) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.