- 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:
- The debtor acquired the collateral subject to the security interest created by the other person;
- The security interest created by the other person was perfected when the debtor acquired the collateral; and
- There is no period thereafter when the security interest is unperfected.
- Limitation of subsection (a) of this Code section subordination. Subsection (a) of this Code section subordinates a security interest only if the security interest:
- Otherwise would have priority solely under subsection (a) of Code Section 11-9-322 or Code Section 11-9-324; or
- Arose solely under subsection (3) of Code Section 11-2-711 or subsection (5) of Code Section 11-2A-508.
History. Code 1981, § 11-9-325 , enacted by Ga. L. 2001, p. 362, § 1.