Priority of security interests in transferred collateral.
G.S. 25-9-325
in effect§ 25-9-325. Priority of security interests in transferred collateral.
(a) Subordination of security interest in transferred collateral. - 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:
(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) of this section subordinates a security interest only if the security interest:
(1) Otherwise would have priority solely under G.S. 25-9-322(a) or G.S. 25-9-324; or
(2) Arose solely under G.S. 25-2-711(c) or G.S. 25-2A-508(e). (2000-169, s. 1; 2025-25, s. 112.)
Source: North Carolina General Assembly (ncleg.gov)URL: https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_25/GS_25-9-325.htmlFetched: 10/19/2026