Priority of security interests in transferred collateral (§ 8.9A-325)

§ 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-324; or

2. arose solely under § 8.2-711 (3) or § 8.2A-508 (5).