A. Except as otherwise provided in subsection B 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:

Terms Used In Arizona Laws 47-9325

  • Collateral: means the property subject to a security interest or agricultural lien. See Arizona Laws 47-9102
  • Debtor: means :

    (a) A person having an interest, other than a security interest or other lien, in the collateral, whether or not the person is an obligor;

    (b) A seller of accounts, chattel paper, payment intangibles or promissory notes; or

    (c) A consignee. See Arizona Laws 47-9102

  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215

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. Subsection A of this section subordinates a security interest only if the security interest:

1. Otherwise would have priority solely under section 47-9322, subsection A or section 47-9324; or

2. Arose solely under section 47-2711, subsection C or section 47-2A508, subsection E.

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