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§ 9-325 Priority of security interests in transferred collateral

9 V.S.A. § 9-325 (N/A)
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§ 9-325. Priority of security interests in transferred collateral

(a) Except as otherwise provided in subsection (b) of this 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.

(b) Subsection (a) of this section subordinates a security interest only if the security interest:

(1) otherwise would have priority solely under subsection 9-322(a) or section 9-324 of this title; or

(2) arose solely under subsection 2-711(3) or 2A-508(5) of this title. (Added 1999, No. 106 (Adj. Sess.), § 2, eff. July 1, 2001.)

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