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Official Code of Georgia Annotated

Title 11. COMMERCIAL CODE · Chapter 9. · Article 9. SECURED TRANSACTIONS · Part 3. PERFECTION AND PRIORITY

11-9-325. Priority of security interests in transferred collateral.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (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. (1)

      The debtor acquired the collateral subject to the security interest created by the other person;#

    2. (2)

      The security interest created by the other person was perfected when the debtor acquired the collateral; and#

    3. (3)

      There is no period thereafter when the security interest is unperfected.#

  2. (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. (1)

      Otherwise would have priority solely under subsection (a) of Code Section 11-9-322 or Code Section 11-9-324; or#

    2. (2)

      Arose solely under subsection (3) of Code Section 11-2-711 or subsection (5) of Code Section 11-2A-508.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1981, § 11-9-325, enacted by Ga. L. 2001, p. 362, § 1.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t11-(v9)-2022-pdf.pdf, Volume V9, 2022 edition, pages 821 to 822; merge action: carried; file SHA-256 ad397fccbf21.