N.J.S.A. 12A:9-325 — Priority of security interests in transferred collateral.

12A:9-325 Priority of security interests in transferred collateral. 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.

This is the verbatim text of N.J.S.A. 12A:9-325, retrieved from the New Jersey Legislature's public statute corpus. Statutes are amended periodically — for the most current version, check the external source link above. Kyzer is not a law firm and this page is not legal advice.