                                 CODE OF VIRGINIA

PRIORITY OF SECURITY INTERESTS CREATED BY NEW DEBTOR (§ 8.9A-326)

a. Subordination of security interest created by new debtor. Subject to
subsection (b), a security interest that is created by a new debtor in
collateral in which the new debtor has or acquires rights and is perfected by a
filed financing statement that would be ineffective to perfect the security
interest but for the application of &#xA7; 8.9A-316(i)(1) or 8.9A-508 is
subordinate to a security interest in the same collateral which is perfected
other than by such a filed financing statement.

b. Priority under other provisions; multiple original debtors. The other
provisions of this part determine the priority among conflicting security
interests in the same collateral perfected by filed financing statements
described in subsection (a). However, if the security agreements to which a new
debtor became bound as debtor were not entered into by the same original debtor,
the conflicting security interests rank according to priority in time of the new
debtor&#8217;s having become bound.

HISTORY: 2000, c. 1007; 2012, c. 155.