2010 Georgia Code
TITLE 11 - COMMERCIAL CODE
ARTICLE 9 - SECURED TRANSACTIONS
PART 3 - PERFECTION AND PRIORITY
PART 3 - PRIORITY
§ 11-9-325 - Priority of security interests in transferred collateral
O.C.G.A.
11-9-325 (2010)
11-9-325. Priority of security interests in transferred collateral.
(a) 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.
(b) 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.
Graham Syfert - Jacksonville Lawyer