N.Y. Uniform Commercial Code Law § 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).