8.9A-325 - A-325. Priority of security interests in transferred collateral. - Virginia Statutes

§ 8.9A-325. Priority of security interests in transferred collateral.

(a) Subordination of security interest in transferred collateral. Except asotherwise provided in subsection (b), a security interest created by a debtoris subordinate to a security interest in the same collateral created byanother person if:

(1) the debtor acquired the collateral subject to the security interestcreated by the other person;

(2) the security interest created by the other person was perfected when thedebtor 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 asecurity interest only if the security interest:

(1) otherwise would have priority solely under § 8.9A-322 (a) or § 8.9A-324;or

(2) arose solely under § 8.2-711 (3) or § 8.2A-508 (5).

(2000, c. 1007.)