62A.9A-325 - Priority of security interests in transferred collateral. - Washington Statutes

Priority of security interests in transferred collateral.

(a) Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b) of this section, 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) Limitation of subsection (a) of this section subordination. Subsection (a) of this section subordinates a security interest only if the security interest:

     (1) Otherwise would have priority solely under RCW 62A.9A-322(a) or 62A.9A-324; or

     (2) Arose solely under RCW 62A.2-711(3) or 62A.2A-508(5).

[2000 c 250 § 9A-325.]