KRS 355.9-325: Priority of security interests in transferred collateral.

(1) Except as otherwise provided in subsection (2) 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:

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

interest:

(a) Otherwise would have priority solely under KRS 355.9 -322(1) or 355.9 -324;

or

(b) Arose solely under KRS 355.2-711(3) or 355.2A-508(5).