N.Y. Uniform Commercial Code Law § 9-326: Priority of Security Interests Created by New Debtor

Section 9--326. Priority of Security Interests Created by New Debtor.

(a) Subordination of security interest created by new debtor. Subject

to subsection (b), a security interest that is created by a new debtor

in collateral in which the new debtor has or acquires rights and is

perfected solely by a filed financing statement that would be

ineffective to perfect the security interest but for the application of

Section 9--316(i)(1) or 9--508 is subordinate to a security interest in

the same collateral which is perfected other than by such a filed

financing statement.

(b) Priority under other provisions; multiple original debtors. The

other provisions of this part determine the priority among conflicting

security interests in the same collateral perfected by filed financing

statements described in subsection (a). However, if the security

agreements to which a new debtor became bound as debtor were not entered

into by the same original debtor, the conflicting security interests

rank according to priority in time of the new debtor's having become

bound.