409.325 Priority of security interests in transferred collateral. - Wisconsin Statutes

409.325

409.325 Priority of security interests in transferred collateral.

409.325(1)

(1) Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:

409.325(1)(a)

(a) The debtor acquired the collateral subject to the security interest created by the other person;

409.325(1)(b)

(b) The security interest created by the other person was perfected when the debtor acquired the collateral; and

409.325(1)(c)

(c) There is no period thereafter when the security interest is unperfected.

409.325(2)

(2) Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest:

409.325(2)(a)

(a) Otherwise would have priority solely under s. 409.322 (1) or 409.324; or

409.325(2)(b)

(b) Arose solely under s. 402.711 (3) or 411.508 (5).

409.325 - ANNOT.

History: 2001 a. 10.