Current as of January 01, 2020 | Updated by FindLaw Staff
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(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 § 47-9-322(a) or § 47-9-324; or
(2) arose solely under § 47-2-711(3) or § 47-2A-508(5).
Cite this article: FindLaw.com - Tennessee Code Title 47. Commercial Instruments and Transactions § 47-9-325 - last updated January 01, 2020 | https://codes.findlaw.com/tn/title-47-commercial-instruments-and-transactions/tn-code-sect-47-9-325.html
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