§ 25-9-325. Priority of security interests in transferred collateral. - North Carolina Statutes

§25‑9‑325.  Priority of security interests in transferredcollateral.

(a)        Subordination ofsecurity interest in transferred collateral. – Except as otherwise provided insubsection (b) of this section, a security interest created by a debtor issubordinate to a security interest in the same collateral created by anotherperson if:

(1)        The debtor acquiredthe collateral subject to the security interest created by the other person;

(2)        The securityinterest created by the other person was perfected when the debtor acquired thecollateral; and

(3)        There is no periodthereafter when the security interest is unperfected.

(b)        Limitation ofsubsection (a) subordination. – Subsection (a) of this section subordinates asecurity interest only if the security interest:

(1)        Otherwise would havepriority solely under G.S. 25‑9‑322(a) or G.S. 25‑9‑324;or

(2)        Arose solely underG.S. 25‑2‑711(3) or G.S. 25‑2A‑508(5). (2000‑169,s. 1.)