Pennsylvania § 9325 Priority of security interests in transferred collateral

Pennsylvania Statutes

§ 9325 — Priority of security interests in transferred collateral

Pennsylvania § 9325

Title 13COMMERCIAL CODE

Ch. 93PERFECTION AND PRIORITY

Subch.PRIORITY

This text of Pennsylvania § 9325 (Priority of security interests in transferred collateral) is published on Counsel Stack Legal Research, covering Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

13 Pa. Cons. Stat. § 9325 (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 9322(a) (relating to general priority rules) or 9324 (relating to priority

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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 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).