New York Laws
Sub Part 3 - Priority
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 interest is
unperfected.
(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 2-A-508(5).

Structure New York Laws