{"data":{"id":"us-nj/n.j.-stat.-12a-9-325","jurisdiction":"us-nj","citation":"N.J. Stat. § 12A:9-325","heading":"Priority of security interests in transferred collateral.","body":"Priority of Security Interests in Transferred Collateral.\n(a)\tSubordination 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:\n(1)\tthe debtor acquired the collateral subject to the security interest created by the other person;\n(2)\tthe security interest created by the other person was perfected when the debtor acquired the collateral; and\n(3)\tthere is no period thereafter when the security interest is unperfected.\n(b)\tLimitation of subsection (a) subordination.  Subsection (a) subordinates a security interest only if the security interest:\n(1)\totherwise would have priority solely under 12A:9-322 (a) or 12A:9-324; or\n(2)\tarose solely under 12A:2-711(3) or 12A:2A-508(5).\nL.2001, c.117, s.1; amended 2001, c.386, s.41.","path":["TITLE 12A COMMERCIAL TRANSACTIONS"],"source_url":"https://pub.njleg.state.nj.us/statutes/STATUTES-TEXT.zip","current_through":"P.L.2025, c.405, and J.R.22","vintage":"","retrieved_at":"2026-08-27T17:54:13Z","sha256":"877080f818411161e4a44ee4bc11c0417405578a13ca249179ed44de849159bf","source_id":"us-nj","stale":true,"prev":"us-nj/n.j.-stat.-12a-9-324","next":"us-nj/n.j.-stat.-12a-9-326"},"notice":"GroundRules: Original legal text. Not legal advice."}