Code of Virginia (Last Updated:July 28, 2020) |
TITLE 8.9A. Commercial Code - Secured Transactions |
PART 3. Perfection and Priority |
SECTION 8.9A-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 § 8.9A-322 (a) or § 8.9A-322 ; or (2) arose solely under § 8.9A-322 (3) or § 8.9A-322 (5). 2000, c. 8.9A-322 . |