8.9A-326 - A-326. Priority of security interests created by new debtor. - Virginia Statutes

§ 8.9A-326. Priority of security interests created by new debtor.

(a) Subordination of security interest created by new debtor. Subject tosubsection (b), a security interest created by a new debtor which isperfected by a filed financing statement that is effective solely under §8.9A-508 in collateral in which a new debtor has or acquires rights issubordinate to a security interest in the same collateral which is perfectedother than by a filed financing statement that is effective solely under §8.9A-508.

(b) Priority under other provisions; multiple original debtors. The otherprovisions of this part determine the priority among conflicting securityinterests in the same collateral perfected by filed financing statements thatare effective solely under § 8.9A-508. However, if the security agreements towhich a new debtor became bound as debtor were not entered into by the sameoriginal debtor, the conflicting security interests rank according topriority in time of the new debtor's having become bound.

(2000, c. 1007.)