(810 ILCS 5/9-325)
Sec. 9-325.
Priority of security interests in transferred collateral.
(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
|
|
(b) Limitation of subsection (a) subordination. Subsection (a)
subordinates a security interest only if the security interest:
(1) otherwise would have priority solely under
|
| Section 9-322(a) or 9-324; or
|
|
(2) arose solely under Section 2-711(3) or 2A-508(5).
(Source: P.A. 91-893, eff. 7-1-01.)
|