TITLE 11 COMMERCIAL CODE

Section 9. Secured Transactions, 11-9-101 through 11-9-809.

ARTICLE 9 SECURED TRANSACTIONS

PART 3 PRIORITY

11-9-325. Priority of security interests in transferred collateral.

1. Subordination of security interest in transferred collateral. Except as otherwise provided in subsection (b) of this Code 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.
2. Limitation of subsection (a) of this Code section subordination. Subsection (a) of this Code section subordinates a security interest only if the security interest:
   1. Otherwise would have priority solely under subsection (a) of Code Section 11-9-322 or Code Section 11-9-324; or
   2. Arose solely under subsection (3) of Code Section 11-2-711 or subsection (5) of Code Section 11-2A-508.

(Code 1981, §11-9-325, enacted by Ga. L. 2001, p. 362, § 1.)