554.9325  Priority of security interests in transferred collateral.

1.  Subordination of security interest in transferred collateral.  Except as otherwise provided in subsection 2, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

a.  the debtor acquired the collateral subject to the security interest created by the other person;

b.  the security interest created by the other person was perfected when the debtor acquired the collateral; and

c.  there is no period thereafter when the security interest is unperfected.

2.  Limitation of subsection 1 subordination.  Subsection 1 subordinates a security interest only if the security interest:

a.  otherwise would have priority solely under section 554.9322, subsection 1, or section 554.9324; or

b.  arose solely under section 554.2711, subsection 3, or section 554.13508, subsection 5.

Section History: Recent form

  2000 Acts, ch 1149, §45, 187

Footnotes

  Effective July 1, 2001; 2000 Acts, ch 1149, §187; for law prior to July 1, 2001, see Code 2001


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