Priority of security interests in transferred collateral

Wis. Stat. § 409.325
in effect
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(1) Subordination of security interest in transferred collateral. Except as otherwise provided in sub. (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. (2) Limitation of sub. (1) subordination. Subsection (1) subordinates a security interest only if the security interest: (a) Otherwise would have priority solely under s. 409.322 (1) or 409.324; or (b) Arose solely under s. 402.711 (3) or 411.508 (5).
Source: WI Statutes (Official Site)URL: https://docs.legis.wisconsin.gov/document/statutes/409.325Fetched: 10/7/2026