N.Y. Uniform Commercial Code Law Section 9-325
Priority of Security Interests in Transferred Collateral


Section 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 Section 9--322(a) or 9--324; or

(2)

arose solely under Section 2--711(3) or 2-A-508(5).

Source: Section 9-325 — Priority of Security Interests in Transferred Collateral, https://www.­nysenate.­gov/legislation/laws/UCC/9-325 (updated Sep. 22, 2014; accessed May 11, 2024).

Accessed:
May 11, 2024

Last modified:
Sep. 22, 2014

§ 9-325’s source at nysenate​.gov

Link Style