Section 9-325 - Priority of security interests in transferred collateral. - Maryland Statutes

§ 9-325. Priority of security interests in transferred collateral.
 

(a)  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)  Subsection (a) subordinates a security interest only if the security interest: 

(1) Otherwise would have priority solely under § 9-322 (a) or § 9-324; or 

(2) Arose solely under § 2-711 (3) or § 2A-508 (5) of this article. 
 

[1999, ch. 282, § 2.]