12A:9-325. Priority of Security Interests in Transferred Collateral.

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

   (1)   otherwise would have priority solely under 12A:9-322 (a) or 12A:9-324; or

   (2)   arose solely under 12A:2-711(3) or 12A:2A-508(5).

   L.2001, c.117, s.1; amended 2001, c.386, s.41.