(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:

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Terms Used In Washington Code 62A.9A-325

  • person: may be construed to include the United States, this state, or any state or territory, or any public or private corporation or limited liability company, as well as an individual. See Washington Code 1.16.080
(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) of this section subordination. Subsection (a) of this section subordinates a security interest only if the security interest:
(1) Otherwise would have priority solely under RCW 62A.9A-322(a) or 62A.9A-324; or
(2) Arose solely under RCW 62A.2-711(3) or 62A.2A-508(5).
[2000 c 250 § 9A-325.]