Texas Business & Commerce Code

§ 9.325 — PRIORITY OF SECURITY INTERESTS IN TRANSFERRED COLLATERAL

BC § 9.325Title 1. UNIFORM COMMERCIAL CODE · Ch. 9. SECURED TRANSACTIONS · Art. C. PERFECTION AND PRIORITY

Statute text

(a)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)Subsection (a) subordinates a security interest only if the security interest:

(1)otherwise would have priority solely under Section 9.322(a) or 9.324; or

…

Legislative history

Added by Acts 1999, 76th Leg., ch. 414, Sec. 1.01, eff. July 1, 2001.