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.

(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.#
(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.

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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.

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