N.Y. Uniform Commercial Code 9-325 – Priority of Security Interests in Transferred Collateral
Section 9–325. Priority of Security Interests in Transferred
Collateral.
(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 Section 9–322(a)
or 9–324; or
(2) arose solely under Section 2–711(3) or 2-A-508(5).