Iowa Code 554.9325 – Priority of security interests in transferred collateral
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1.
Subordination of security interest in transferred collateral.
Except as otherwise provided in subsection 2, a security interest created by a debtor is subordinate to a security interest in the same collateral created by another person if:
a. the debtor acquired the collateral subject to the security interest created by the other person;
b. the security interest created by the other person was perfected when the debtor acquired the collateral; and
c. there is no period thereafter when the security interest is unperfected.
Terms Used In Iowa Code 554.9325
- person: means individual, corporation, limited liability company, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity. See Iowa Code 4.1
2.
Limitation of subsection 1 subordination.
Subsection 1 subordinates a security interest only if the security interest:
a. otherwise would have priority solely under section 554.9322, subsection 1, or section 554.9324; or
b. arose solely under section 554.2711, subsection 3, or section 554.13508, subsection 5.