Montana Code 30-9A-325. Priority of security interests in transferred collateral
30-9A-325. Priority of security interests in transferred collateral. (1) Except as otherwise provided in subsection (2), a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
Terms Used In Montana Code 30-9A-325
- Collateral: means the property subject to a security interest or agricultural lien. See Montana Code 30-9A-102
- Debtor: means :
(i)a person having a property interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;
(ii)a seller of accounts, chattel paper, payment intangibles, or promissory notes; or
(iii)a consignee. See Montana Code 30-9A-102
- Person: includes a corporation or other entity as well as a natural person. See Montana Code 1-1-201
(a)the debtor acquired the collateral subject to the security interest created by the other person;
(b)the security interest created by the other person was perfected when the debtor acquired the collateral; and
(c)there is no period thereafter when the security interest is unperfected.
(2)Subsection (1) subordinates a security interest only if the security interest:
(a)otherwise would have priority solely under 30-9A-322(1) or 30-9A-324; or