(a)  Subordination 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:

(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)  Limitation of Subsection (a) subordination.  Subsection (a) subordinates a security interest only if the security interest otherwise would have priority solely under La. Rev. Stat. 10:9-322(a) or 9-324.

Acts 2001, No. 128, §1, eff. July 1, 2001.