(a) Subordination of security interest in transferred collateral. – Except as otherwise provided in subsection (b) of this section, 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;

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(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) of this section subordinates a security interest only if the security interest:

(1) Otherwise would have priority solely under N.C. Gen. Stat. § 25-9-322(a) or N.C. Gen. Stat. § 25-9-324; or

(2) Arose solely under N.C. Gen. Stat. § 25-2-711(3) or N.C. Gen. Stat. § 25-2A-508(5). (2000-169, s. 1.)