South Dakota Codified Laws 57A-9-325. Subordination of security interest created by debtor to security interest created by another person
Current as of: 2023 | Check for updates
|
Other versions
(a) 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;
Terms Used In South Dakota Codified Laws 57A-9-325
- Person: includes natural persons, partnerships, associations, cooperative corporations, limited liability companies, and corporations. See South Dakota Codified Laws 2-14-2
(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) Subsection (a) subordinates a security interest only if the security interest:
(1) Otherwise would have priority solely under § 57A-9-322(a) or 57A-9-324; or
(2) Arose solely under § 57A-2-711(3) or 57A-2A-508(5).
Source: SL 2000, ch 231.