Priority of security interests in transferred collateral

810 ILCS 5/9-325, under Priority.

810 ILCS 5/9-325

(810 ILCS 5/9-325)

    Sec. 9-325. 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     Section 9-322(a) or 9-324; or

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

(Source: P.A. 91-893, eff. 7-1-01.)