Priority of security interests in transferred collateral

(a) Subordination of security interest in transferred collateral. - 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) Limitation of subsection (a) subordination. - Subsection (a) of this section subordinates a security interest only if the security interest: (1) Otherwise would have priority solely under G.S. 25-9-322(a) or G.S. 25-9-324; or (2) Arose solely under G.S. 25-2-711(c) or G.S. 25-2A-508(e). (2000-169, s. 1; 2025-25, s. 112.)