§ 6A-9-325 - Priority of security interests in transferred collateral. - Rhode Island Statutes

SECTION 6A-9-325

   § 6A-9-325  Priority of security interestsin transferred collateral. – (a) Subordination of security interest in transferred collateral. Exceptas otherwise provided in subsection (b), a security interest created by adebtor is subordinate to a security interest in the same collateral created byanother person if:

   (1) The debtor acquired the collateral subject to thesecurity interest created by the other person;

   (2) The security interest created by the other person wasperfected when the debtor acquired the collateral; and

   (3) There is no period thereafter when the security interestis 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 §6A-9-322(a) or 6A-9-324; or

   (2) Arose solely under § 6A-2-711(3) or 6A-2.1-508(5).