Texas Business and Commerce Code 9.325 – Priority of Security Interests in Transferred Collateral
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(a) 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) Subsection (a) subordinates a security interest only if the security interest:
(1) otherwise would have priority solely under § 9.322(a) or 9.324; or
(2) arose solely under § 2.711(c) or 2A.508(e).
Terms Used In Texas Business and Commerce Code 9.325
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005